Wednesday, January 28, 2009

Federal Ponzi Scheme

Every time I hear about the Federal Bailouts in the news and then what is happening with Wall Street all I can think about is it seems Ponzi schemes are bad unless you are in the government. I mean in a Ponzi scheme, you convince people to invest with you and promise them returns, but the returns are actually from others jumping in to invest. You then skim off the invested money for your own purposes. Isn't this exactly what has happened with Social Security? The money from the original investors is supposed to be paid back by later people except that the money is being pulled away by the gorvernment. There are more people expecting to be paid from it than there are now investing in it.

The bailout is kind of the same. They want us to invest our tax dollars so they can skim them off for their own purposes with the explantation that it will change our economy and the future generations will pay it back. Isn't this also a Ponzi scheme. I am supprised that Maddoff is going to court instead of being put in charge of the treasury. Oh, that job was taken by someone who cheated on their taxes.


SeaSpray said...

Throckmorton, I don't understand it. Finances are not my strong suit.

All I know is it sounds ominous and frustrating as heck. I do-NOT-understand why some white knight doesn't come crusading in to obliterate all pork spending. ???

Why, WHY can't they all put politics aside and ONLY allot money for the *necessary* things?

I heard that Nancy Pelosi endorsed 300 (million?-not sure about number)for birth control and she justified it to save money. Translation = more abortions =-reduced population save money

Fortunately, it was rescinded.

It seems like we have this mega festering financial wound, in which they continually add more infective sources to it and then patch it with a band-aid bailout when instead things need to be excised/cleaned out and excisions hurt.

Where is the responsibility? Why aren't people held accountable? How is it that one bank, corp, whatever -don't recall could go out and give everyone bonuses and get a 50,000 dollar chandelier?

Why is it not written in stone that there are no luxuries allowed..the money is for the bare bones to keep things running?

If you have a need to reinvest in the business... not your wallet...until you are in safe financial waters... and even then I would think that you need to be vigilant about where the money is going.

I see major irresponsibility and feel powerless to make a difference. i feel like we, the public are being steamrolled over without any regard to long term consequences.

It is sickening.

And WHERE are the republicans? I only heard ONE republican speak out harshly against it.

And this should not even be party oriented... but for the good of the people and our great country.
I am absolutely FLOORED that that man can be put in charge of the UNITED STATES TREASURY. That is an honor and one he is not worthy of.

Yes..people make mistakes. But you would think that he would say not only that he is sorry... but that he would say even though by law because the time limits have passed, I don't have to pay these back taxes...i do not want to accept this position without making this right and so I am therefore going to pay EVERYTHING I owe.

The message instead's okay to be crooked if you don't get caught and even if you do...we will reward your dishonesty by putting you in charge to make sure the public pays their taxes, etc., or see to it that they are fined with heavy penalties for non payment of taxes and/or jailed for noncompliance.

Perhaps in the future, a person can have their lawyer argue... that their client should not be penalized so heavily and that they want their client to be afforded the same rights and pass that this man has gotten.

It's like they have set a new precedent for dishonesty.

Then again...I am not a lawyer or government official, so perhaps I am misunderstanding this process. ??

And THIS is the beginning of the administration.

SeaSpray said...

Throckmorton.. off topic but it seems you were right about someone suing the airlines regarding the Hudson MIRACLE crash.

Each person was refunded and given 5,000 for what they went through.

This man (last name Heart?)got a broken nose and was bruised. He is suing because he doesn't know what the extent of his *EMOTIONAL* damages will be.

That being said... my hairdresser was telling me yesterday that she has a client that is high up in the airlines who stated that they know planes need to be better maintained but they still get sent out. She said you wouldn't want to know the things they miss or push forward.

Conversely, The Air force One Plane is so well maintained that they replace a part at the first sign of wear and drop and replace engines often too. It is the most maintained plane in the world. (according to the documentary-which was very interesting)

Same maintenance for the Marine one chopper.

They said a plane used for public transportation could go another 30,000 miles after first noticing the wear on that part.

Andrew_M_Garland said...

How Geithner didn't pay his self-employment Tax
Judge for yourself if Geithner's oversight was knowing and intentional, according to the record.

The Myth of the Economic Multiplier

Most government plans are explained as producing 3-4 times more benefit than what is spent. This is the "multiplier" effect of that money moving around doing so much good. Unfortunately, it is a convenient myth. Government money moves wealth from everyone else to the people who received the money, just once. The multiplier is 1.

SeaSpray said...

Andrew - I didn't realize he did pay his taxes for 01 and 02. Of course it was only after the administration got on him about it.

I think I am getting ready to disengage from politics because it is going to be a l-o-o-o-n-g FOUR years.

Of course I say that and then something else will reel me in. It is frustrating and stressful.

I also hope the dems don't get the Fairness Doctrine reenacted. I won't even get started with this one.

Going off to happy place now. :)