The Sojourner
Economy Exposed.com
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If there were no regulation, people would have been more careful. The regulators were sleeping and not doing their job, he claims that he was close to regulators, those regulators should be investigated to the max.
Click on Bernard’s name in the sentence to download and watch the video clip where Bernard Madoff (<–Click here) mentions that he was close to regulators.
Ponzi Scheme
The lesson to be learned here is that ponzi schemes do not work, whether it be an individual or a government. Social security will meet the same fate as Madoff and every other similar schemes that has been created.
Ponzi dynamics: The housing bubble and the stock market bubble were both ponzi schemes. The whole idea is that you have a great pool, the investment return is not coming from the investment but from cashing out to a greater pool.
Now, think of the way the governments operate their budget. They borrow money forever, the national debt always gets bigger never gets smaller. Whenever the debts mature they have to borrow more money to pay it off and when there is an interest payment they have to go deeper into debt.