Greece and Ireland - Two giant ponzi schemes

Here' a nice piece about the giant ponzi scheme in Greece. Greek politicians do not see the debt as being debt. They see it as income. So says Steven R. Earle in the Financial Post of Canada. "The problem with much of the opinion surrounding the Greek financial crisis is that few writers actually have any experience in Greece, in dealing with its politicians, its bankers, its systems, its cultural proclivities and its people," he says. He does, and his article makes very interesting reading. Eric Morecambe used to joke "How much does a Greek earn?" but I bet he'd be sobered in a second by such stuff.

And ponzi schemes are not just for the Greeks. The Irish have got a giant ponzi scheme going too. Rob Lyons writes in Spiked about how Ireland became a giant ponzi scheme. Well, if you can make money out of thin air, is it surprising that the wheels have come off these wagons.

Quantitative easing back for more cash!

Printing money is old hat. Quantitative easing is the new kid on the block. Actually a spotty teenager by now. The Monetary Policy Committee is chewing over whether to "pump more money" into the system. Who is being consulted on all this? Bernie Madoff in his jail cell?

I'd like to know, if this new QE idea gets the nod, which computer button gets pushed and from where does the "pumping" start? BP doesn't bother with empty wells so is the MPC any different?

Commenting on this Guardian article, Snix says -

"How much longer will this giant ponzi scheme go on for ? Who will decide to revert to the gold standard first? Those left holding worthless currencies will look so foolish. Better go and tend my garden."

Giant ponzi scheme indeed. It seems there's one rule for Bernie Madoff and another for the central bankers. But are they any different?

Ponzi Madoff admits $50bn fraud scheme!

Madoff's going to jail. Just how long is not certain, but Methuselah would be taken aback by the potential porridge he's about to do.

I like this quote from one of Madoff''s victims. Burt Ross is a former mayor of the New Jersey town Fort Lee. He told the BBC he did not expect to recover a single cent of the $5m he invested. "Bernard Madoff is a genius," said Mr Ross. "You're dealing with the greatest con artist probably in the history of the world. He created a mystique and associated with extraordinarily well respected and revered people, and so he was given the benefit of the doubt by financial regulators who blew it badly."

Blew it badly is an understatement. Most of these legalised cowboys (no offence to the real thing!) are still trying to make ends meet with other peoples' money.

One thing is certain, I think. Madoff will be in great demand in the jail for master classes for those who screwed up and failed to make a bean! The authorities should keep a beady eye on him. We don't want a group of well trained ponzi artists coming out all keen as mustard to do Wall Street over again.