NinjaVideo.net Founder Gets 14 Months

angry tapir writes "A Virginia judge has sentenced Matthew David Howard Smith, a founder of the NinjaVideo.net website, to 14 months in prison, the U.S. Department of Justice announced Friday. Smith was indicted along with four others late last year. The DOJ charged that they illegally provided copyright-protected movies and TV programs for download from the NinjaVideo.net website. The site operated from February 2008 until authorities shut it down in June 2010."

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Re:Meanwhile...

[cold fjord]

In other news, no one involved in the massive fraud and graft that trashed the world economy has seen the inside of a jail cell.

Much of the pressure that lead to the problem was created by powerful politicians pursuing seemingly noble progressive goals. Unfortunately their meddling lead to disaster as they pressured mortgage companies to make more and more loans to people that couldn't afford them. The politicians did their damage and are now retiring, their friends and lovers got their money. America is left holding the bag. Actually it is worse that that - those same politicians created important legislation claimed to address the mess they made, but it doesn't. In some cases it only creates the opportunity to damage more of the economy. President Bush had tried to reform things, but was blocked by the Democrats.

The Real Culprits

In Reckless Endangerment, Morgenson and Rosner offer considerable censure for reckless bankers, lax rating agencies, captured regulators, and unscrupulous businessmen. But the greatest responsibility for the collapse of the housing market and the near “Armageddon” of the American economy belongs to Fannie Mae and Freddie Mac and to the politicians who created and protected them. With a couple of prominent exceptions, the politicians were Democrats claiming to do good for the poor. Along the way, they enriched themselves and their friends, stuffed their campaign coffers, and resisted all attempts to enforce market discipline. When the inevitable collapse arrived, the entire economy suffered, but no one more than the poor.

Jim Johnson, advisor to Walter Mondale and John Kerry, amassed a personal fortune estimated at $100 million during his nine years as CEO of Fannie Mae. “Under Johnson,” Morgenson and Rosner write, “Fannie Mae led the way in encouraging loose lending practices among the banks whose loans the company bought. A Pied Piper of the financial sector, Johnson led both the private and public sectors down a path that led directly to the credit crisis of 2008.”

Fannie Mae lied about its profits, intimidated adversaries, bought off members of Congress with lavish contributions, hired (and thereby co-opted) academics, purchased political ads (through its foundation), and stacked congressional hearings with friendly bankers, community activists, and advocacy groups (including ACORN). Fannie Mae also hired the friends and relations of key members of Congress (including Rep. Barney Frank’s partner).

Reckless Endangerment includes the Clinton administration’s contribution to the home-ownership catastrophe. Clinton had claimed that dramatically increasing homeownership would boost the economy; instead, “in just a few short years, all of the venerable rules governing the relationship between borrower and lender went out the window, starting with . . . the requirement that a borrower put down a substantial amount of cash in a property, verify his income, and demonstrate an ability to service his debts.”

Reckless Endangerment utterly deflates the perceived history of the 2008 crash. Yes, there was greed — when is there not? But it was government distortions of markets — not “unregulated capitalism” — that led the economy to disaster.

Bailout Politics

Among the Congressional “leaders” invited to the White House to devise a bailout “solution” are the very people who have for years created the risks that have now come home to roost.

Five years ago, Barney Frank vouched for the “soundness” of Fannie Ma