When’s a Ponzi Scheme Illegal?
I was overcome with mixed emotions when I heard Bernard Madoff, former Nasdaq Stock Market chairman and founder of Bernard L. Madoff Investment Securities LLC, was arrested and charged with securities fraud in what federal prosecutors called a Ponzi scheme that could involve losses of more than $50 billion.
On the one hand, I was amused at another distraction heaped on the American public to keep them from understanding the real problem. It would seem Mr. Madoff is Wall Street’s sacrificial lamb offered to divert attention from the banksters looting the U.S. Treasury. He is the “bad” guy in a $50 billion Ponzi scheme while the “good” guys loot the Treasury in a multi-Trillion dollar Ponzi scheme.
On the other hand, I was disgusted at the hypocricy of the Securities and Exchange Commission, New York U.S. Attorney, and the Federal Bureau of Investigation for their complicity in covering up one of the largest frauds in U.S. history. The “real” criminals get away with looting the U.S. Treasury and transferring trillions of dollars to their crony buddies while an individual like Madoff is thrown under the bus to take the fall. Where are the indictments for Ben Bernanke and Henry Paulson?
Madoff wasn’t only describing his business when he said he was “finished,” that he had “absolutely nothing,” that “it’s all just one big lie,” and that it was “basically, a giant Ponzi scheme”.
Madoff was describing the whole fraudulent financial system set up by the Federal Reserve to enrich international banksters. I think he was recognizing that our economy is “finished,” that our dollar is worth “absolutely nothing,” that fractional reserve banking “is all just one big lie,” and yes… because of the collapse of the Housing Credit bubble created by the Federal Reserve, combined with bad bets in the derivitives markets, many commercial banks and other financial entities found themselves unable to meet their financial obligations in a gigantic Ponzi/Pyramid Scheme.
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