Cartoon 661: Scheme

A game of greed has consumed the entire capitalist structure.  The premiere player is America. The rest of the world has watched America with envy because of the substantial profits gained from a lassiez-faire approach to business and capital. The rest of the world rushed to join in this scheme of things. The result is that even day-to-day operations of businesses require almost day-to-day financing. The lion’s share of the businesses profits goes into reinvestment in the financial market. In other words, making profits off of profits. This game works well unless…

The American financial markets have not “rightened” themselves because the financial instruments that collapsed were inter-dependent. It was ever more exotic financial instruments built one on top of another.  The credit crisis shook the foundation of this house of cards. The structure has fallen in on itself.  Bailouts are not going to shore up a collapsed structure. Have you ever heard of a failed Ponzi scheme starting up again where it left off? A new Ponzi scheme must be stated from the ground up.  The rush by Goldman Sachs and American Express to become banks is to get bailout money. It is the start of a new Ponzt scheme.

Those who do not learn from history, can look forward to a destiny of reliving it