The Great American Ponzi Scheme! Is Bernie Madoff any different than our Government?

Wouldn’t it be nice to share some good news?  I’d like to think as we enter this new decade that we could learn from the past and move boldly into the future with the assurance of a bright tomorrow.  Well, tomorrow may not be so bright if we don’t stop and look at our choices.

Every choice has a consequence!  I say that often as I address groups around the nation on ethics and ethical choices. From my perspective it seems that we, as a nation, are facing a serious ethical quandary.  Do we continue the rabid spending that has defined this past decade or do we accept the responsibility for where we are and elect to live within our means?

I know…I know – economists from all parts of the country would quickly argue with me that debt is sustainable and that we only have a problem if we can’t pay it back.  My response:  Bull.  As far as I am concerned…we are acting unethically and the consequences will be disastrous if we don’t soon take corrective action.

Facts: In 2000 our debt was a bit more than $5.5 Trillion.  By 2005 our national debt was around $7.5 Trillion and by the beginning of 2010 – well our national debt had crested above $12 Trillion.  That’s right – our national debt more than doubled in one short decade.  And, with the aging of the largest group of people in the history of this nation – the Baby Boomers – we will see nothing but increased debt for the next several decades unless we take dramatic action.

I ask is Bernie Madoff any different than our Government?  In Bernie’s case his victims didn’t know what was happening.  I bet if they did – they wouldn’t have invested with him.  In the case of our Government – we the taxpayers know – and yet, we still seem to be O.K. with the actions our elected officials take.  The crime is the same…the only difference is – it’s not a crime if you allow it to take place.  Folks, a Ponzi scheme is a Ponzi scheme no matter how you color the picture.

For a quick view of my video blog on this subject click here

The question is – what are we willing to do?  If we pay the promises made in the past to those who are aging to receive them…we might find ourselves bankrupt.

Share your opinions on the solutions to this problem through your comments.  Who knows…perhaps someone in big GOVERNMENT might be reading and take note.

One Response to The Great American Ponzi Scheme! Is Bernie Madoff any different than our Government?

  1. Chuck,

    Your words, “In Bernie’s case his victims didn’t know what was happening. I bet if they did – they wouldn’t have invested with him.” speak volumes to Madoff victims.

    For most investors, it was only because the SEC approved Madoff’s firm that we felt ‘safe’ in placing our hard earned money with him. Not only did they approve, but in 1992 after a fraud with an accounting firm that fed Madoff more money was discovered, the Wall Street Journal reported that the SEC actually condoned and therefore recommended Madoff. This was basically an endorsement which only lured more investors into the Madoff/SEC web.
    Once Madoff turned himself in (the SEC did NOT catch him), SIPC’s role is to promptly pay investors up to $500,000 based on the expected balances in their accounts.

    In the 13 months since Madoff’s arrest, we have learned that SIPC does not have enough money to pay the victims.
    We have also learned why.

    As a result of this underfunding, the Trustee has purposefully gone against a Federally mandated statute and arbitrarily created an entirely new manner in which to pay the victims. This manner is neither prompt nor consistent with SIPC’s 39 year history. It is also illegal.

    For additional ways in which the government is failing not only Madoff victims, but all American investors, please view

    The Madoff Coalition for Investor Protection is actively seeking justice for Madoff victims now and protection for all American investors in order that they will never have to experience the devastation that has been felt by those who trusted the government to monitor Bernard Madoff Investment Securities.

    Thank you for your view on this matter.

    Ronnie Sue Ambrosino
    Madoff Coalition for Investor Protection

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