Q; How is the Bernie Madoff situation any different than our current banking system?
A: It isn't!
MLM companies are required to sell products that are worth the price of the item?
Ponzi schemes rely on new investors to generate profits.
Neither model is sustainable.
Which sounds more like our whole banking system?
How are the practices of this system even legal?
But what happens when those at the top of the pyramid run out of people at the bottom?
The government creates new "investors" (us) to keep those at the top... at the top.
If the system collapsed... so what?
Credit unions and smaller banks could buy the "Toxic" loans at a price closer to their real value.
People could afford homes and other products because many of those required to make a profit (in our current system) at the many levels would be eliminated.
These new larger institutions (but smaller and more nimble than the old institutions) would be better able to service their customers (and not just it's major investors).
More people would have more access to more REAL money (Not the hyper-inflated/deflated Monopoly money used by the IMF or WTO) and be able to use that money without the fear of usury that is often applied by our current big banks.
These new medium-sized banking companies can use the financial infrastructure of the old system to reduce any lag time between transactions.
How does the country benefit more?
By having one thousand billionaires?
Or by having a few billionaires and a million millionaires?
And why are we three hundred million "thousandaires" (or even"hundredaires") financing programs that keep much of this hard earned wealth out of reach?
I'm not hating on Obama (McCain would have done the same), but just pumping water from a sinking boat only works for so long.
Eventually, we have to fix the leak (or in this case, the whole boat) itself.
(Or get a new boat.)
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