Government Corruption News Stories

Excerpts of Key Government Corruption News Stories in Major Media

Below are key excerpts of revealing news articles on government corruption from reliable news media sources. If any link fails to function, a paywall blocks full access, or the article is no longer available, try these digital tools.

Note: This comprehensive list of news stories is usually updated once a week. Explore our full index to revealing excerpts of key major media news stories on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.

Kim Stephens: He’s an architect experienced in steel structures. Now Richard Gage is touring the country with a controversial message about September 11. Kopi Sotiropulos: Richard Gage is here to show us why he’s calling for a more thorough investigation into the collapse of the World Trade Center buildings. First of all give us a little bit more about your background. Gage: I’m an architect of twenty years, a member of the American Institute of Architects, and have been studying steel frame fire proof buildings for about that long. Kim Stephens: We ask that for clarification because as we get into this, we want people to make sure that you’re not just somebody with a wacky idea. You come with some science to you. What is the official reason for the collapse of the World Trade Center towers? Gage: Well we’re told that the planes hit the buildings, and there was an explosion and a fire, and about a hour and a half later, in the case of the north tower, the buildings collapsed due to structural weakening, due to the fires. The problem is that we don’t have large gradual deformations associated with collapses. And fires in high rises have never brought down a steel frame high rise building at all, ever. And what we have, unfortunately, is the evidence in the twin towers and the third skyscraper to collapse that day, which most people don’t know anything about it. We have the evidence of the ten key features of controlled demolition. In the case of building seven, it collapses straight down into its own footprint, at free fall speed, in the first hundred feet. It’s dropping, as you can see symmetrically, smoothly, at free fall speed, in the first hundred feet. Two and a half seconds. This is uncanny, there’s forty thousand tons of structural steel designed to resist this collapse.

Note: The above text is taken from the KMPH interview available here. Richard Gage, AIA, is the founder of Architects and Engineers for 9/11 Truth. Remarkably, this interview, though short, was respectful and evenhanded. No ridicule, no debunking, no "conspiracy theory" dismissals! To watch a 7-minute video of the interview, click on the link above. To read a transcript of the interview, click here. For an astonishing comment on PBS by the owner of the building's decision to "pull" the building, click here.

When capitalism seemed on the verge of collapse last fall, Kristin Halvorsen, Norway’s Socialist finance minister and a longtime free market skeptic, did more than crow. As investors the world over sold in a panic, she bucked the tide, authorizing Norway’s $300 billion sovereign wealth fund to ramp up its stock buying program by $60 billion — or about 23 percent of Norway's economic output. "The timing was not that bad," Ms. Halvorsen said, smiling with satisfaction over the broad worldwide market rally that began in early March. The global financial crisis has brought low the economies of just about every country on earth. But not Norway. With a quirky contrariness as deeply etched in the national character as the fjords carved into its rugged landscape, Norway has thrived by going its own way. When others splurged, it saved. When others sought to limit the role of government, Norway strengthened its cradle-to-grave welfare state. And in the midst of the worst global downturn since the Depression, Norway’s economy grew last year by just under 3 percent. The government enjoys a budget surplus of 11 percent. Norway is a relatively small country with a ... population of 4.6 million and the advantages of being a major oil exporter. Even though prices have sharply declined, the government is not particularly worried. That is because Norway avoided the usual trap that plagues many energy-rich countries. Instead of spending its riches lavishly, it passed legislation ensuring that oil revenue went straight into its sovereign wealth fund, state money that is used to make investments around the world. Now its sovereign wealth fund is close to being the largest in the world.

Note: For lots more on the global economic and financial crisis from reliable sources, click here.

A hydrogen bomb is missing from the United States' arsenal and has been, evidently, for 40 years. When last seen, the bomb was one of four aboard an Air Force B-52 bomber that crashed on a frozen bay near Thule Air Force Base in northern Greenland on Jan. 21, 1968. Two years later, the United States and Denmark reported that they agreed "that the accident caused no danger to man or animal and plant life in the area." The 96-page report of the investigation indicated that all four nuclear warheads aboard the plane had disintegrated on impact. Case closed. Well, maybe not, the BBC says this week. Declassified documents that the BBC obtained under the United States Freedom of Information Act indicate that only three of the bombs were accounted for, and that the United States searched secretly for the fourth bomb, without success. By April [1968], a decision had been taken to send a Star III submarine to the base to look for the lost bomb, which had the serial number 78252. (A similar submarine search off the coast of Spain two years earlier had led to another weapon being recovered.) But the real purpose of this search was deliberately hidden from Danish officials. One document from July reads: "Fact that this operation includes search for object or missing weapon part is to be treated as confidential NOFORN", the last word meaning not to be disclosed to any foreign country. "For discussion with Danes, this operation should be referred to as a survey repeat survey of bottom under impact point," it continued. And what does the Pentagon have to say about all this now? It had no comment for the BBC.

Note: To read the original New York Times article from Jan. 22, 1968 on this incident, click here.

Just after midnight on Feb. 5, 1958, two U.S. Air Force jets, each traveling 500 mph, collided 35,000 feet over the Georgia countryside. Improbably, all four crew members survived and the accident might have passed into dim memory if not for the thermonuclear weapon jettisoned off Tybee Island, Ga. The bomb is still there. After a weeks-long search, it was "declared irretrievably lost on 16 April 1958," the Air Force reported four years ago in an assessment of whether to conduct a new search and recovery mission. It concluded that "it is in the best interest of the public and the environment to leave the bomb in its resting-place." The Navy Supervisor of Salvage, the report noted, didn't think the bomb could be found. Energy Department engineers' best guess was that it lay "buried nose-down, probably 5-15 feet below the seabed." Clearly, the Air Force would have been glad to let it go at that. However, it did not count on the determination of Derek Duke, a 60-year-old retired Air Force officer who lives nearby and for more than six years has been searching for the bomb in the waters around Tybee Island, about 16 miles from Savannah. Responding to Duke's claim that he had found an area of high radiation the Air Force returned last September to look again. The report on the new search has not been released. Any danger still presented by the Tybee bomb is from the 400 pounds of conventional explosives or from humans somehow ingesting uranium that might escape from the bomb and its silt prison.

Note: For another interesting article on this in USA Today on Oct. 19, 2004, click here. For a much more in-depth article on this incident, click here.

Everyone called the stranger with all the money "Maqsood." He would sit in his Mercedes, waiting in the parking lot of the mosque in Newburgh, N.Y., until the Friday prayer was over. Then, according to members of the mosque, the Masjid al-Ikhlas, he approached the young men. The man, a Pakistani, occasionally approached the assistant imam of the mosque. In time, many of the mosque's older members had made the man for a government informant, according to mosque leaders. They said that he seemed to focus most of his attention on younger black members and visitors. "It's easy to influence someone with the dollar," said Mr. Muhammed, a longtime member of the mosque. "Especially these guys coming out of prison." The members of the mosque now believe that Maqsood was the government informant at the center of the case involving four men from Newburgh arrested and charged this week with having plotted to explode bombs at Jewish centers in New York City. The government case revolves significantly around the work of an informant who facilitated the men's desire to mount a terrorist attack. The role of informants has been a constant in the terror cases made by federal and local authorities since 9/11. And just as constant have been the attempts by lawyers for those charged to portray their clients as dupes, people who would not have committed to do harm without the provocation of the informants. The informant was not identified in court papers unsealed on Wednesday in Manhattan. But according to a person briefed on the case, the informant is Shahed Hussain, the central prosecution witness in a 2004 federal sting focusing on a pizzeria owner and an imam at an Albany mosque.

Note: For lots more on the "war on terror" from reliable sources, click here.

President Obama says his proposed reforms to the military commissions his predecessor established to try suspected terrorists will bring the tribunals "in line with the rule of law." But it isn't the same law that applies in U.S. courts. Pentagon officials appoint the judges and can remove them. Military commanders choose the jurors, who can convict defendants by non-unanimous votes, except in death penalty cases. The military can monitor defense lawyers' conversations with their clients. Prosecutors can also present evidence that would never pass muster in civilian courts. Confessions made under physical or mental pressure could be admissible, despite Obama's disavowal of torture and coercion. There's no ban on evidence from illegal searches. And defendants may be convicted on the basis of hearsay - a second hand report of an out-of-court accusation by another person, perhaps a fellow suspect, whom the defense never gets to see or question. Civil-liberties advocates and legal organizations defending prisoners who may be tried before the commissions say the system is an invitation to abuse and differs little from the tribunals established by President George W. Bush. "The system is designed to ensure the outcome they want ... convictions in every case," said Ben Wizner, an American Civil Liberties Union attorney who has attended proceedings for prisoners at the U.S. naval base at Guantanamo Bay, Cuba. "This suggests that the much-heralded improvements to the Bush military commission system are largely cosmetic."

Note: For lots more on the "war on terror" from reliable sources, click here.

Five Muslim community workers have accused MI5 of waging a campaign of blackmail and harassment in an attempt to recruit them as informants. The men claim they were given a choice of working for the Security Service or face detention and harassment in the UK and overseas. They have made official complaints to the police, to the body which oversees the work of the Security Service and to their local MP Frank Dobson. Now they have decided to speak publicly about their experiences in the hope that publicity will stop similar tactics being used in the future. Three of the men say they were detained at foreign airports on the orders of MI5 after leaving Britain on family holidays last year. After they were sent back to the UK, they were interviewed by MI5 officers who, they say, falsely accused them of links to Islamic extremism. On each occasion the agents said they would lift the travel restrictions and threat of detention in return for their co-operation. When the men refused some of them received what they say were intimidating phone calls and threats. Two other Muslim men say they were approached by MI5 at their homes after police officers posed as postmen. Each of the five men, aged between 19 and 25, was warned that if he did not help the security services he would be considered a terror suspect. A sixth man was held by MI5 for three hours after returning from his honeymoon in Saudi Arabia. He too claims he was threatened with travel restrictions if he tried to leave the UK."

Note: For lots more on the "war on terror" from reliable sources, click here.

Japan's Foreign Minister said today that his country was ''seriously concerned'' about the loss of a hydrogen bomb off Okinawa 24 years ago, and said Japan would press for ''full details'' about the incident from the United States. The comments by the official, Sosuke Uno, came after the Government was sharply criticized both by the Japanese press and by some civic and anti-nuclear groups for playing down reports that the lost bomb is still under the ocean 80 miles from a Japanese island. Over the last two days the Pentagon has provided the first details of the 1965 accident, admitting for the first time that the accident happened off Japan's shores rather than 500 miles from land, as it originally contended. The aircraft carrier Ticonderoga, which was carrying the weapon when it was lost overboard with an A-4 aircraft, was reportedly heading to Yokosuka, the naval base south of Tokyo, from Vietnam. This morning the Asahi Shimbun, the most liberal of Japan's major dailies, castigated the Japanese Foreign Ministry for ignoring the first reports of the accident. In an editorial, the newspaper said that ''an unexpectedly profound gap'' exists between ''the people's feelings'' about the presence of nuclear weapons and the Government's willingness to ignore the presence of the weapons in the interest of avoiding strains with the United States.

A hydrogen bomb that went missing for three months in the Mediterranean Sea is back in the hands of the U.S. military after being found the previous day. The bomb had been lost in January when two U.S. military planes, a KC-135 tanker and a B-52 carrying four thermonuclear weapons, collided during midair refueling. Three of the four bombs fell to the ground near Palomares, Spain. While none of them detonated with a nuclear explosion, the high-explosive triggers in two of the bombs went off upon impact and contaminated the area with radioactive material. A fourth bomb plunged into the water off Spain's southeastern coastline. Following the incident, the Spanish government announced it would no longer allow U.S. planes carrying nuclear weapons to fly over its territory. On March 17, the U.S. Navy, using a midget submarine called the Alvin [found] the bomb 2,500 feet underwater, intact and with its parachute still attached.

Note: You can access a Jan. 27, 1966 NY Times article on this incident for a small fee at this link.

One of the newest energy lobbyists claims he has the answer to climate change: spaceships. The government has in its possession "extraterrestrial vehicles," lobbyist Stephen Bassett said. As in flying saucers. Imagine the power source, he said, behind a 30-foot wide saucer that weighs the same as a tractor-trailer yet hurtles through galaxies at 20,000 miles per hour. "What is the energy system operating that craft?" Bassett said. "They're not burning kerosene." Bassett ... is working for free as a lobbyist, representing the Hawaii-based Exopolitics Institute, an educational organization which describes itself as "dedicated to studying the key actors, institutions and political processes associated with extraterrestrial life." Bassett said he is less lobbyist and more political activist. "The UFO phenomenon is real," Bassett said. "The E.T. extraterrestrial presence is real." Bassett's been lobbying about seven months, targeting the science and technology, and defense and aviation angles. He added energy to his portfolio in a Senate filing last week. He has spoken to lawmakers in the past, Bassett said, but he's writing off lobbying Congress for now, calling the extraterrestrial issue "the third rail" of politics. Besides, he and other believers have a bigger name on their list. "Knowing that Congress could not act," Bassett said, "what we did was focus on the executive branch, the White House." Those who believe the truth is out there have been waiting for someone like President Obama to come clean about the government hiding information on extraterrestrials, Bassett said.

Note: What's highly unusual about this article is that there is not a note of ridicule. This may be a first for a UFO article in the New York Times. For lots more eye-opening, reliable information on this topic, including a Times article in which a former CIA chief describes a UFO cover-up, click here and here.

The most stunning and least reported news about President Obama's press conference with health industry executives this week wasn't those executives' willingness to negotiate with a Democrat. It was that Democrat's eagerness to involve those executives in a discussion about health care reform even as they revealed their previous plans to pilfer $2 trillion from Americans. That was the little-noticed message from the made-for-TV spectacle administration officials called a health care "game changer": In saying they can voluntarily slash $200 billion a year from the country's medical bills over the next decade and still preserve their profits, health care companies implicitly acknowledged they were plotting to fleece consumers, and have been fleecing them for years. With that acknowledgment came the tacit admission that the industry's business is based not on respectable returns but on grotesque profiteering and waste - the kind that can give up $2 trillion and still guarantee huge margins. Chief among the profiteers at the White House event were insurance companies, which have raised premiums by 119 percent since 1999, and one obvious question is why - why would Obama engage those particular thieves? It's a difficult query to answer, because Obama is a health care mystery, struggling to muster consistent positions on the issue. Listening to a 2003 Obama speech, it's hard to believe he has become such an enigma. Back then, he declared himself "a proponent of a single-payer universal health care program" - i.e., one eliminating private insurers and their overhead costs by having government finance health care.

Note: For lots more on health issues from reliable sources, click here.

A disgraced federal judge was sentenced Monday to nearly three years in prison for lying to investigators about sexually abusing two female employees, who said they feared him so much they hid from him in the courthouse. U.S. District Judge Samuel Kent ... could have received up to 20 years in prison, but prosecutors said they wouldn't seek more than three years under a plea agreement. He also was fined $1,000 and ordered to pay $6,550 in restitution to the secretary and case manager whose complaints resulted in the first sex abuse case ever against a sitting federal judge. "Your wrongful conduct is a huge black X, a smear on the legal profession, a stain on the judicial system itself, a matter of concern in the federal courts," said U.S. District Judge Roger Vinson, a visiting senior judge called in from Pensacola, Fla. Vinson ordered Kent, 59, to surrender June 15 for transfer to the U.S. Bureau of Prisons and to serve three years' probation once his 33-month sentence is completed. He also was ordered to participate in an alcohol-abuse program while in prison. The chairman of the U.S. House Judiciary Committee and its ranking Republican demanded that Kent resign immediately from the bench Monday. His lawyer has said he retired rather than resigned, which would allow him to continue drawing a federal judge's salary.

Note: This case represents a major shift in that it is the first sex case ever against a sitting federal judge. In fact, if you watch the astonishing documentary Conspiracy of Silence, you will see that many top officials are involved in sexual abuse and have fiercely kept that a secret. Let's hope more of this comes out as we spread the word.

The Somali pirates attacking shipping in the Gulf of Aden and Indian Ocean are directed to their targets by a "consultant" team in London, according to a European military intelligence document obtained by a Spanish radio station. The document, obtained by Cadena SER radio, says the team and the pirates remain in contact by satellite telephone. It says that pirate groups have "well-placed informers" in London who are in regular contact with control centres in Somalia where decisions on which vessels to attack are made. These London-based "consultants" help the pirates select targets, providing information on the ships' cargoes and courses. In at least one case the pirates have remained in contact with their London informants from the hijacked ship, according to one targeted shipping company. "The information that merchant ships sailing through the area volunteer to various international organisations is ending up in the pirates' hands," Cadena SER reported the report as saying. This enables the more organised pirate groups to study their targets in advance, even spending several days training teams for specific hijacks. Senior pirates then join the vessel once it has been sailed close to Somalia. Captains of attacked ships have found that pirates know everything from the layout of the vessel to its ports of call. The national flag of a ship is also taken into account when choosing a target, with British vessels being increasingly avoided, according to the report.

Note: The remarkable capability described here -- knowledge of all the details of cargo, ship layout, nationality, and especially position and course -- is one that only national intelligence agencies are likely to have. The positional information would require real-time satellite or drone aircraft surveillance data. Could MI6, the British C.I.A., be running the Somali pirate operations, which have so suddenly spiked up just as the Pentagon's new AFRICOM gets underway?

The Department of Homeland Security is reining in a "maverick" division of the agency following criticism of a report it issued that details domestic "extremists" ranging from anti-tax movements to pro-environment groups, a DHS official told FOX News on Tuesday. The report, released in March ... was on top of a controversial document the same office produced last month that said U.S. veterans were ripe for recruitment by terrorist groups. The quickly withdrawn report, titled the "Domestic Extremism Lexicon," comes from the department's Office of Intelligence and Analysis, the same unit that produced the report on right-wing extremists recruiting vets. The document, first uncovered by The Washington Times, uses a broad brush to define terms used when analyzing dozens of supposedly extremist ideologies inside the United States. They cover: Jewish extremists, animal rights extremists, Christian identity extremists, black separatism extremists, anti-abortion extremists, anti-immigration extremists, anti-technology extremists, Cuban independence extremists and tax resistance extremists, to name a few. In addition to the report on right-wing threats issued last month -- for which DHS Secretary Janet Napolitano apologized -- DHS detailed left-wing threats in a similar report released in January. The "Domestic Extremism Lexicon" covers ideologies across the spectrum. The top of the document also defines "alternative media" as something sinister -- though the term is commonly used to describe blogs and popular publications like New York's Village Voice.

Note: How strange that Fox News posted this report, yet other major media largely ignored this important news. Click here to read the extremism report.

In a highly unusual reversal, the Defense Department’s inspector general’s office has withdrawn a report it issued in January exonerating a Pentagon public relations program that made extensive use of retired officers who worked as military analysts for television and radio networks. Donald M. Horstman, the Pentagon’s deputy inspector general for policy and oversight, said in a memorandum released on Tuesday that the report was so riddled with flaws and inaccuracies that none of its conclusions could be relied upon. In addition to repudiating its own report, the inspector general’s office took the additional step of removing the report from its Web site. The inspector general’s office began investigating the public relations program last year, in response to articles in The New York Times that exposed an extensive and largely hidden Pentagon campaign to transform network military analysts into “surrogates” and “message force multipliers” for the Bush administration. The articles also showed how military analysts with ties to defense contractors sometimes used their special access to seek advantage in the competition for contracts related to Iraq and Afghanistan. The report released in January took issue with the articles. [It] has been the subject of controversy, with some members of Congress calling it a “whitewash” marred by obvious factual errors. For example, the report erroneously listed many military analysts as having no ties whatsoever to defense contractors.

Note: The author of this article, David Barstow, won a 2009 Pulitzer prize for exposing military corruption, yet the press gave virtually no coverage to his prize. Why does it seem that the media don't want us to know about military influence on the news we receive?

In a remarkable illustration of the power of lobbying in Washington, a study released last week found that a single tax break in 2004 earned companies $220 for every dollar they spent on the issue -- a 22,000 percent rate of return on their investment. The study by researchers at the University of Kansas underscores the central reason that lobbying has become a $3 billion-a-year industry in Washington: It pays. The paper by three Kansas professors examined the impact of a one-time tax break approved by Congress in 2004 that allowed multinational corporations to "repatriate" profits earned overseas, effectively reducing their tax rate on the money from 35 percent to 5.25 percent. More than 800 companies took advantage of the legislation, saving an estimated $100 billion in the process, according to the study. The largest recipients of tax breaks were concentrated in the pharmaceutical and technology fields, including Pfizer, Merck, Hewlett Packard, Johnson & Johnson and IBM. Pfizer alone repatriated $37 billion, representing 70 percent of its revenue in 2004, the study found. The now-beleaguered financial industry also benefited from the provision, including Citigroup, J.P. Morgan Chase, Morgan Stanley and Merrill Lynch, all of which have since received tens of billions of dollars in federal bailout money. The researchers calculated an average rate of return of 22,000 percent for those companies that helped lobby for the tax break.

Note: For lots more on corporate corruption from reliable sources, click here.

Former FBI agent John Connolly was convicted ... of second-degree murder for leaking information to Boston mobsters that led to the 1982 shooting death of a gambling executive who also had ties to gangsters. Prosecutors said former World Jai-Alai president John Callahan was killed after Connolly warned gangsters that Callahan might implicate them in other slayings. Boston mob kingpins James "Whitey" Bulger and Stephen "The Rifleman" Flemmi were FBI informants handled by Connolly. Connolly was convicted in 2002 of racketeering because of his relationship with Bulger and Flemmi, including a 1995 tip that enabled Bulger to escape arrest and begin a life on the run that continues to this day. Bulger is one of the FBI's "Ten Most Wanted" fugitives. The story that unfolded over the past two months in a Miami courtroom spanned more than two decades of Boston's underworld, a tale that has already spawned several books and was the basis for the 2006 Martin Scorcese film "The Departed." Connolly retired from the FBI in 1990 and was later indicted on federal racketeering and other charges stemming from his long relationship with Bulger and Flemmi, who paid the agent $235,000 over the years for protection, according to trial testimony. In a case considered one of the FBI's worst failures, Connolly was convicted in 2002 and is serving a 10-year federal prison sentence in the corruption case. He was indicted in 2005 in the killing of Callahan, 45, whose body was found stuffed in the trunk of his Cadillac at Miami International Airport in August 1982.

The invention described herein was made in the course of, or under, a contract with the U. S. ATOMIC ENERGY COMMISSION. It relates ... to a method and apparatus for drilling, tunneling and shaft-sinking in rock with particular advantage at hitherto inaccessible depths. The present invention uses the basic apparatus and method disclosed in U.S. Pat. No. 3,357,505 and in Los Alamos Scientific Laboratory of the University of California Report No. LA-3243 (1965) entitled "Rock Melting as a Drilling Technique." In the existing rock melting devices of the prior art, a major difficulty which limited performance was that of delivering a sufficiently large heat flux to the melting face of the drill or penetrator. The development of the heat pipe alleviates this problem in that the use of heat pipes enables the transfer of heat energy from a compact heat source to the extended melting surface of the penetrator at rates high enough to maintain the surface above the melting temperature of the rock. The extrapolation of a mechanism useful for forming large holes in the earth in accordance with the present invention uses the combination of a refractory rock-melting tool, an in situ heat source preferably a small nuclear reactor and an exceedingly efficient heat transfer mechanism such as a system of heat pipes to convey heat from the source to the walls of the drilling tool.

Note: This patent shows that government scientists at Los Alamos were using a "small nuclear reactor" to drill underground tunnels. Several of the inventors listed on the patent worked at Los Alamos National Laboratory, including: McInteer, Berthus B.; Mills, Robert L.; Potter, Robert M.; Robinson, Eugene S.; Rowley, John C.; and Smith, Morton C.. For photos and more fascinating information on this most intriguing patent, click here.

Something strange is afoot when Popbitch – provider of a weekly email beloved of students, stuffed full of celebrity tittle-tattle and links to the silliest miscellany of the web – breaks off from such glorious trivia to encourage readers to support GoldmanSachs666.com, a deadly serious website measuring the political tentacles of the mighty investment bank. The credit-market catastrophe that has plunged the world into recession is everywhere stirring new ways of thinking about how banking relates to the wider world, but nowhere more so than among a generation coming into political consciousness in these searing times. Something is brewing, some argue, that could make the "regulatory-financial complex" something to rail against in the same way that the military-industrial complex was in the Cold War. This should worry Goldman Sachs. More so than any other firm, it exists at the intersection of politics and high finance. "It was listening to the news coming out of AIG that got me fired up," says Mike Morgan, founder of GoldmanSachs666.com. "While politicians were screaming about $165m paid out to AIG executives in bonuses, $180bn was walking out the door." The Federal Reserve and the then-treasury secretary, Hank Paulson, decided to funnel public funds to AIG, and its counterparties were paid in full. You don't have to scratch far into the internet to find conspiracy theories: Mr Paulson was chief executive of Goldman before going into government; he appointed Edward Liddy, formerly of Goldman, to run AIG; Goldman was AIG's biggest counterparty, receiving $12.9bn from AIG after the bailout.

Note: For lots more on the Wall Street bailout, click here.

Like most of us, I guess, I was caught absolutely flat-footed by the economic crisis. I got the part about subprime loans, and why they were both stupid and greedy, but I did not get how that bit of banker's nonsense instantly spread to the national economy and the world economy. Finally I read an article that actually put the thing together in a coherent way. It's in the May 14 issue of the New York Review of Books, and it's by Robert M. Solow, who won the Nobel Prize for economics, so presumably he's not just pulling ideas out of his nose. He starts by talking about leverage, and how very tempting it is as long as prices continue to rise. In the 1990s, it was typical for brokerages (or banks - the difference between the two became blurred) to use a 10-1 model; they used $100,000 to borrow $1 million, and everything was rosy. But it was rosier still at 20-1, and even rosier at 30-1. I am summarizing here - the whole article can be found [here]. [In Solow's words,] "According to data compiled by the Federal Reserve, household wealth in the U.S. peaked at $64.4 trillion in mid-2007, and had plummeted to $51.5 trillion at the end of 2008. Something like $13 trillion of perceived wealth vanished in not much more than a year. Nothing concrete had changed. Buildings still stood; factories were still just as capable of functioning; people had not lost their ability to work or their skills or their knowledge of technology. But a population that thought in 2007 that they had $64.4 trillion with which to plan their lives discovered in 2008 that they had lost 20 percent of that."

Note: Think about it. Simply because of financial manipulations, hundreds of thousands of homes and factory workplaces are now empty, while the numbers living on the street and in camps along rivers has increased dramatically. Yet many of the richest have only grown richer as a result of mergers and more. For lots more on the Wall Street bailout, click here.

Important Note: Explore our full index to revealing excerpts of key major media news stories on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.