Draft on Ponzi

posted yesterday by leveymg on the Madoff empire. His piece illustrates the incestuous, pervasive corruption of U.S.–and global–high finance.

One rarely finds this level of scrutiny and analysis in the bought-off MSM, but every day a scouring of the blogosphere uncovers several such detailed, insightful postings.

Anyone on the Left or Right who cares to probe has by now figured out that Geithner, Summers and Bernanke (Three Amigos? Three Blind Mice? Or just another Wall Street consultancy?) helped create and enable this rickety Ponzi economy of bogus wealth resting on paper pyramids, rather than on real economic activity producing goods and services. The three of them are interested in propping up the rapidly collapsing pyramid, not in reengineering it.

The literally trillions of dollars of magical, digital fiat money that they are now pouring into the economy to halt and reverse the deflationary spiral and economic meltdown are signs of desperation. At least some of the hundreds of billions are going to economic stimulus that will result in real economic activity. But what about the literally trillions that are merely going to prop up the balance sheets of insolvent financial giants that made calamitously bad bets on derivatives? Some