Leading Economists compare US to Ponzi scheme, come out against US buying toxic debts

"The loser in a Ponzi scheme is the last one through the door"

"the scam keep working as long as you can lure in new players, leverage without income keeps functioning as long as you can tap new credit"

"As long as you were in early and got your money out.....everything was fine....but if you are one of the many at the end......the entire pyramid collapses upon you.

Yahoo has an AP article enumerating a long list of economists who are critical of the taxpayer toxic debt buy.

Many economists skeptical of bailout

http://news.yahoo.com/s/politico/2008092 1/pl_politico/13689

I think that ultimately, we are going to have to decide, what is more important to us, protecting Wall Street or Americans who work for a living.

I think that given that the various financial magazines were writing - for the last three or four years, that this situation was a disaster waiting to happen, it is safe to say that these banks and bankers WERE AWARE OF THE RISKS THAT THEY WERE TAKING and were doing it to make high profits. Being aware of the risks, they have no excuse for claiming that they were caught by some calamity. Its their fault. They did this TO THEMSELVES. So, how can the American taxpayer be suddenly on the hook for the money? They NEED to be allowed to fail and the debt that they incurred needs to be dealt with in the same way they dealt with borrowers themselves. That is to say - we have to be fair and say NO, or we have to bail out the real victims, which is to say the millions of Americans who were victimized by their pyramid scheme..

Pyramid or Ponzi scheme is actually the appropriate way to visualize this huge hustle.

This (below) is from an article in the LA Times on European reaction to the mortgage speculation collapse. "Europeans on left and right ridicule U.S. money meltdown"

There's more...


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