If you don't know who Kreuger was, you should:
In the 1920s he was the most admired businessman in the world. The "Match King."
He controlled 90% of global match production, lent money to sovereign governments, and his securities were the most widely held in America.
But after his death in 1932, auditors spent 5 years untangling over 400 subsidiary companies and discovered the whole thing was held together with fictitious assets, forged bonds, and the unquestioning loyalty of people too dazzled to ask questions.
Investors lost $750 million (~$17 billion in today's money). His deficits exceeded Sweden's national debt.
Doesn't this sound familiar?
It's just like Elon Musk's playbook - the most DANGEROUS house of cards I've witnessed in my career.
This week in federal court, Musk took the stand to argue that Sam Altman stole a charity. 3 days later he'd contradicted himself under oath so many times that the judge told his lawyers she suspected plenty of people don't want to put the future of humanity in Mr. Musk's hands.
OpenAI's attorney asked if Tesla is pursuing AGI. Musk said no. The attorney then pulled up Musk's OWN post from March 4 where he wrote Tesla will be one of the companies to make AGI.
His own words entered into evidence against him. BY HIM.
Then the attorney asked if xAI used OpenAI's models to train Grok (which violates OpenAI's terms of service).
Musk called it a general practice among AI companies. Pressed for a direct answer, he said "partly."
Think about that: Musk is in court accusing OpenAI of betrayal while admitting under oath that xAI violated the very same company's terms of service to build Grok.
Then came the credibility test:
Musk was asked to name his companies that benefit society. He listed Tesla, SpaceX, Neuralink, and X without hesitation. Every one of them is an uncapped for-profit enterprise.
Then why did xAI start as a benefit corporation and quietly flip to a for-profit C-corp? No clean answer.
This is someone who repeatedly launches entities with noble-sounding charters and converts them into for-profit corporations once the money gets serious.
Then his money manager Jared Birchall took the stand:
OpenAI's lawyer asked about the donor-advised funds at Vanguard and Fidelity that Musk used to send his $38 million. Did Musk have any legal right to direct where the money went once it entered the DAF?
Birchall couldn't answer. Said the legal question was beyond his expertise.
The entire lawsuit hinges on that donation creating enforceable obligations. But the man who managed Musk's money just told a federal jury he can't confirm Musk had any enforceable claim over those funds.
Now step back...
This is a man who promised full autonomy by 2018, a million robotaxis by 2020, and unsupervised FSD by June 2025.
EVERY deadline was missed.
He claimed he invested $100 million in OpenAI. The real number was $38 million. His defense? His "reputation" made up the difference.
Kreuger had 400 subsidiaries and used one entity to prop up another through structures nobody could follow. Musk has Tesla, SpaceX, xAI, Neuralink, the Boring Company, and X.
He shifts AI talent from Tesla to xAI, has xAI building the brains for Tesla's Optimus robot, and uses X as a megaphone while the algorithm amplifies his narrative to 200 million followers.
Kreuger's investors trusted the man, NOT the math.
They loved the confidence. They stopped asking questions because the aura of genius made questioning feel foolish.
The same psychology applies to Musk's empire today.
Kreuger's reckoning took 5 years of forensic auditing after his death. But Musk is providing his in REAL TIME: contradicting his own posts under oath, admitting to the practices he's suing others for, watching his logic collapse under cross-examination.
Different decade.
Different industry.
Same ending.
The truth always catches up.
You want to see an entity that has 100s of subsidiaries that are horizontally and vertically connected and that have been run for years (decades ?) by former managing directors of Enron's auditors, Arthur Andersen, take a look at UnitedHealth Group/Optum.
"UnitedHealth Group operates a massive corporate structure containing roughly 2,700 subsidiaries and affiliates worldwide."
"- Rapid Growth:
The number of subsidiaries ballooned from 149 in 2010 to over 2,600 by 2025, largely driven by acquisitions of healthcare providers.
- Diverse Holdings: The network includes insurance providers, pharmacy benefit managers (PBMs), infusion-focused entities, and thousands of care providers.
- International Presence: The group holds subsidiaries across the globe, including in India and various countries in South America.
- Optum Health: This subsidiary is now the largest employer of physicians in the U.S., employing roughly 90,000 physicians"
Here you have the largest healthcare insurer in the US (world?), that is also the largest employer of physicians (10% of all US physicians)...
Then there are various associated private venture funds, including Optum Ventures, UNH Foundation and Stephen Hemsley's own investment firm, Cloverfields Capital, which went from being 80% invested in $UNH as of 2020Q4, to liquidating all of this stock just prior to the announcement of a major DOJ investigation into the company, when the stock crashed.
Fraud, fraud, everywhere!
I wonder how many years/decades it will take to untangle all the *high level* fraud that is being perpetuated all around us, starting with the WH, down to local government and by so many major corporations, public, private, in-between and down the line.
Elon is just the tip of a gigantic, very dark iceberg.
We need some *real* men, good men and women to stand up and put a stop to the ubiquitous corruption and criminality.
This is not the world I will leave to my children.