Quote:
Originally Posted by spence
Madoff didn't invest, he just banked the money, falsified returns and paid investors largely from their own money.
If SS is a ponzi scheme than so is any government backed security.
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you appear to be catching on....
the government has not "invested" the money(unless you consider the cash transfers by a large beaureaucracy from one individual to another= investment), they spent it and are now paying their "investors" from current contributions by new "investors"(dupes)....exactly the same(except the "their own money" part)
if Madoff could have convinced the Fed to buy his debt and "create" some money for him...he might still be in business...
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