Political Ponzi scheme

Bernard Madoff is accused of running a $ 50 billion ponzi scheme which failed like a ponzi scheme is expected to fail. Duly arrested and prosecuted. Well house arrested to be precise. ( He still lives in the comforts of his million dollar apartment in mid town Manhattan over looking the Central Part. Lucky you.)
He conned financially savvy milliners and no middle class guy is allowed anywhere near him. People were ready to invest by the millions for the very sight of him in his Miami Beach pent house or the Country Club there which he regularly patronised.
All these luxuries not withstanding he is done for life in a prison. Sooner rather than later.
But then for the financially un-savvy investor what is a Ponzi Scheme Wikipedia defines it as

fraudulent investment operation that pays returns to investors from their own money or money paid by subsequent investors rather than from profit See full page here

Wikipedia goes on to add

The Ponzi scheme usually offers abnormally high short-term returns in order to entice new investors. The perpetuation of the high returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors in order to keep the scheme going. Go to Wikipedia page

Now what was the housing boom in United States ? An official Ponzi scheme by first Ronald Reagan and later by the Bush administration. Very simple. Give tax breaks on housing mortgages so people will buy up houses so there will be demand for housing so housing prices will go up further reduce the interest rates and make funds easily available so more people will buy up houses so housing prices will go up and further relax rules and flipping properties becomes the norm so more people will get into this speculative spiral so prices will go up further and don't forget Alan. Yes Alan Greenspan to turn a blind eye so there will be no regulatory restrictions so the boom will boom even more so ... so.... so. Till such time the scheme collapses. Like a Ponzi scheme ? Very much. See what Wikipedia has to say about collapse of the

The system is destined to collapse because the earnings, if any, are less than the payments. Usually, the scheme is interrupted by legal authorities before it collapses because a Ponzi scheme is suspected or because the promoter is selling unregistered securities. As more investors become involved, the likelihood of the scheme coming to the attention of authorities increases. Its Here

Here the authorities were the perpetrators of the scheme so it went on and on for so long the world nearly come to an end in Dec 08. Now the governments the world over are pouring hundreds of billions of dollars in a seemingly bottomless pit called the global economy with even a ray of hope nowhere in sight.
If looks like a Ponzi, walks like a Ponzi and quacks like a Ponzi then chances are its a Ponzi scheme. Except that George W Bush got away scot free.

God Bless the Political Ponzi Schemer.