Documented Wall Street Fraud/Greed criminal american-style Documented Wall Street Fraud/Greed criminal american-style
Documented Wall Street Fraud/Greed criminal american-styleKeep in Mind that Insiders are SELLING Their Stock Positions at a Rate of Approximately 44 to 1; Perfect Timing - "Election-Year-Fraud-Cycle" ; P.T. Barnum Really Knew His america When He Said There Was a Sucker Born Every Minute (in america)
The Bear's Lair: Greenspan's Ponzi Scheme By Martin Hutchinson UPI Business and Economics Editor Published 11/24/2003 5:36 PM WASHINGTON, Nov. 24 (UPI) -- A Ponzi scheme requires three things in order to be (temporarily) successful: a massive source of outside money, a sophisticated PR campaign, bloviating about its glories, and a "magic mushroom" to make people believe in it. U.S. monetary policy currently has all three. For those not around in 1920, Charles Ponzi ran a scam in which money was supposed to be invested in international postal coupons (the exchange rate disruptions of World War I had made it at least theoretically profitable to buy Spanish coupons and use them to pay U.S. postage.) The postal coupons were the "magic mushroom" -- providing the hallucinogenic ingredient that people didn't really understand, but that appeared to make it possible to make fantastic returns. By publicizing the success of early "investors," paying back investors who demanded their money, and even agreeing to be audited, Ponzi created a PR campaign that attracted new money. By operating in the major money center of Boston, he maximized the access to new investors, whose money could be used to pay off old ones -- he was taking in $1 million per week at the peak, real money in 1920.......... Currently, the United States is running a $500 billion trade deficit, and a budget deficit that may well see that level only in passing, as Medicare, homeland security and election-year spending propel it ever upward. Hence the need for financing; like Ponzi, the U.S. economy needs huge supplies of new money to finance the twin deficits, since domestic savings have shown no signs whatever of stepping up to do so.......... The PR campaign is unquestionably in high gear, and has been for several years. Traditionally, central bank chiefs are expected to pour cold water on the enthusiasms of politicians, counseling fiscal prudence, raising interest rates at awkward times, and generally "taking away the punchbowl just as the party gets going" in William McChesney Martin's immortal phrase. Not Greenspan. Having acted in traditional fashion in December 1996, warning of "irrational exuberance," he then reversed himself, found a "productivity miracle" in the U.S. economy since 1995, and used the supposed rapid rise in productivity to justify M3 money supply growth at close to 10 percent per annum and short term interest rates frequently well below the inflation rate............. Productivity provides the "magic mushroom," the element that allows investors to suspend their disbelief, based on decades of past experience, and convince themselves that this time, $500 billion twin deficits really are financeable and the Standard and Poors 500 share index really is worth 30 times earnings (or alternatively, that the "extraordinary items" of 40 percent of net income, excluded from S&P 500 earnings calculations, really are extraordinary.).......... http://www.upi.com/view.cfm?StoryID...24-051207-8746r AND U.S. GDP Grows at 8.2 Percent Pace in 3Q 1 hour, 4 minutes ago By JEANNINE AVERSA, Associated Press Writer WASHINGTON - The economy roared ahead at an astounding 8.2 percent annual rate in the third quarter, the fastest pace in nearly two decades and a much stronger performance than previously thought. It raises hope that a long spell of lackluster business activity is finally over....... AND Global Bubble Economy, Fed monetary policy is the cause Bubble Economy Happens Again The global economy is the middle of another bubble economy after the IT bubble of the late 1990s. Fed monetary policy is the cause, in our view. Despite no new technology to inflate optimism, this bubble is spreading into more asset classes and could potentially become equally large. We believe the first indicator of this bubble is the surge in property and equity markets in the US, which boosts consumption through the wealth effect and investment through underpricing capital. The second indicator is higher foreign investment inflows into China as US demand spills over into the global economy. As foreign direct investment surges into China -- the lowest cost producer -- capacity expands to meet the increase in demand....... http://www.morganstanley.com/GEFdat...ue.html#anchor1