Bernie is right, Governments are large Ponzi schemes. This is how the government works : Governments borrows new money to retire old debts.So long as there will be people willing enough to lend the government money this scheme will continue rolling. But if creditors pull the plug, governments go bankrupt. It has happened before in Argentina and other South American countries.

In a Ponzi scheme Early investors are paid out of money put in by later investors and when there are no new investors, the Ponzi scheme collapses.

A detailed explanation as to how US Government is a large Ponzi Scheme is at Seeking Alpha website.

I think during his case with the government Bernie Madoff should have declared to the court that his “investment” scheme was modeled directly after Social Security.

Read the whole interview at NY Magazine

Bernie Madoff NY Magazine Interview is a post from: Daily Investment Tips

This cartoon tells it all

Investing School : Bernard Maddof Investing School is a post from: Daily Investment Tips