[Marxism] Michael Hudson - Wealth Creation or a Ponzi Scheme?

Dbachmozart at aol.com Dbachmozart at aol.com
Wed Dec 24 08:43:11 MST 2008


     


_Global Research_ 
(http://rs6.net/tn.jsp?e=001FX99VdWD_KE_ck217iUtfGV0Mo9bRnRpACCC1MFIPJLO3Hn6sEX84rEjScGmvbe6Bsakh771r857XFIErT3de-JNxVqCFEwWsWas3YhBJXbpET
s6w4AU7Q==) , December 23, 2008


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Last week the Good Lord evidently realized that not  enough people had been 
reading Hyman Minsky’s explanation of how financial  cycles end in Ponzi 
schemes – the stage in which banks keep the boom going  by lending their customers 
the money to pay interest and thus avoid  default. So He sent Bernie Madoff to 
dominate the news for a week and give  the mass media an opportunity to 
familiarize newspaper readers and TV  watchers with just how Ponzi Schemes work. 
What Mr. Madoff did was, in a  nutshell, what the economy as a whole has been 
doing under the moniker  “wealth creation.” 
If the media were able to wait until as late in the  financial collapse as 
last week to provide helpful diagrams about how  Ponzi schemes need to keep on 
growing exponentially, it is simply because  bad foreign financial news is not 
deemed newsworthy in North America. But  Europe has been having its own 
run-throughs, headed by Spain – which by no  coincidence is now experiencing the 
biggest real estate bust outside of  the post-Soviet economies. 
The best case study occurred two years ago. On May 9,  2006, Spanish police 
raided 21 homes and offices of Afinsa Fienes  Tangibles SA, the world’s largest 
postage-stamp dealer, and rival firm,  Forum Filatélico. They charged eleven 
men with running a $6.4 billion  pyramid scheme that took in some 343,000 
investors – 1 percent of Spain’s  entire population, making the fraud one of the 
largest in Spanish  history.[
 
 
 
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<_www.globalresearch.ca/index.php?context=va&aid=11480_ 
(http://www.globalresearch.ca/index.php?context=va&aid=11480) >

 



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