Friday, February 20, 2009

The Obama Stimulus Is a Ponzi-Scheme

 Is Obama the Bernie Madoff of Politics?

Is the Stimulus Plan a Ponzi Scheme?

Does a Bear............?

               Charles Ponzi

Looks that way....
One definition of a Ponzi-scheme is: "A Ponzi scheme usually offers abnormally high short-term returns in order to entice new investors (taxpayers). The perpetuation of the high returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors (taxpayers) in order to keep the scheme going.  The system is destined to collapse because the earnings (jobs and wealth), if any, are always less than the payments (taxes)". 

This massive transfer of wealth from wealth-producers to wealth-takers, while claiming to "create" additional jobs and wealth, is actually just transforming that confiscated wealth into ineffective high-cost boondoggles designed to fund Union leader thugs, Acorn revolutionaries, government Mandarins, and the resurgence of the multi-generational welfare voters that are the core of the Democrat Party.  

People are asking how could so many intelligent, savvy, and well-educated people have been conned by Maddof?  How could they believe in constant and predictable, above-average returns on their investments, contrary to everything else that was going on in the Market?  How could Regulators and Media people who were warned about  the obvious fraud, not have reacted in an normally expected way to that information?  How could they have believed in the obviously questionable proposition?

How? Henry Blodget, writing on ClusterStock , has some ideas. For one, Mr. Madoff was genuinely liked. “Except for the occasional prickly exchange with those asking for more detail on how he generated his returns, he seems to have been roundly beloved,” Mr. Blodget said.

Some think that many of the targets of the scheme were filled with hubris, and the "exclusivity" of  being in Bernie's fund was a perceived status and perk, due their being 'special'.  Other's enjoyed the comfort of herd 'group-think'; being part of the 'in crowd'; others felt that there was safety in numbers and were swayed by the group's consensus that all was well. Still other's abdicated responsibility to others to make their investment decisions, while more assumed safety due to expected government oversight.

Sound like the passage of the Stimulus plan to you?  In just a few years we'll be able to assess the abysmal failure of this travesty that's been forced on the taxpayers by Obama and the rest of the Democrats, but unfortunately by that time it will be to late. Despite multiple examples of the failure of Keynesian economics, and the effectiveness of supply-side tactics used by Kennedy, Regan and Bush, the Democrats, and their supporters in the main street media, have employed the scheme that will deliver their objectives, not the taxpayers.

In addition to the outright theft of wealth from the middle class, there are other aspect of the Plan that will pose even greater theft of wealth and freedom; extraodinary growth of government, almost on the scale of Europe, along with the establishment of a government function that is the beginning of full government health care; and the re-establishment and encouragement of life-long and multi-generational welfare class.

All this under the guise of a stimulus plan supposedly intended to shock our economy back to health.....that will cost over $3Trillion .  But wait!  Now we're being told that this plan is just the down payment - it's not going to be enough.  But, we're assured that if we put more in, we'll get better results.  We'll just have to nationalize the banks, and a few other things, but we'll get back to you on that.......

Ponzi-Scheme?  Seems like it to me.


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