Fact: The mortgage/housing market was one big MLM/ponzi scheme by the government

too much to read

Where ?

welcome to the federal reserve banking system

wrong.

I've always been confused as to why houses go up in value. You buy a house and it becomes used, the walls get dings in them, doors no longer properly seal, lights fail, you get cracks in the wall, your ac / heater / water heater / watering system breaks....

It's just like a car. You buy a brand new car and it goes down in value. The difference is after a few years they will never build that same exact car again, while they'll continue building your same exact house someplace else.

It's kind of silly when you think about it.

I mean, why buy a used house for $200k when you can buy a brand new one in the same area for just a slight bit more.

Federal Reserve and Ponzi Scheme are actually quite similar, they both create money out of nothing... One is a scam, the other is an institution that helps stabilize the economy, how effective it is, is debatable, but comparing it to a Ponzi scheme isn't really THAT far off...

It's not the house that goes up in value so much, but more so the property. They can build new houses, but they can't build more property.

Helps stabilized the economy? Hows that working out?

Tons of factors are in play when it comes to increasing house values. Increasing population, availabilty of quality land and desired locations (for example a house in a good school system area), material costs etc.

ponzi schemes take money from later investors to pay off the earlier investors, adding more & more investors until the pyramid collapses upon itself, unable to payoff all the investors. in no way whatsoever is that how the central bank operates.

How do you think the government pays back the fed?

that's an entirely different issue, but to answer your question- T-bills.

moreover, another fundamental difference between the central bank and a ponzi scheme is ponzi schemes, by definition, invest in nothing. the fed does invest, maybe not successfully at all times, but it does invest.

the economy is a ponzi scheme.

ops, my mistake

A real ponzi scheme as mentioned in this post, is our social security system. Wait until all of the baby bomers go to collect their payments. There is nothing to collect because we do not have enough new works to pay back into the system.

This is the real ponzi scheme.

Yup right on.

take a look at Peter Schiff Mortgage Bankers Speech from Nov 2006...
http://www.youtube.com/watch?v=6G3Qefbt0n4 - part 1 of 8, you'll find rest at "Related Videos"...

You are correct. The SS system should be listed in the Dictionary as an example of a true Ponzi Scheme.

LOL Why should madoff be in jail? Because if some black guy steals a pack of cigarettes he can get 10 years in jail, yet Madoff has had no real consequences yet even though people have killed themselves due to his scam.

not true.

That's bullshit. In the past five years they built eighty thousand houses in my hometown. And just north of my town is a whole heck of a lot of nothing......

we need to go back to a gold-backed monetary system. our whole financial system is one big ponzi scheme built upon nothing of value. if every dollar had to be back by a weight in gold there would probably be no such thing as leverage, derivatives, and all this fake wealth being created in computer systems out of thin air. this is the kind of shit that is causing inflation and all these artificial bubbles.

shit is just built upon one another in our financial system like a pyramid scheme out of thin fucking air. it's like creating value out of nothing.

if you think about it even the stock market is all a fucking fraud. when the stock market is at it's high the increase in value of those stocks creates imaginary wealth that isn't even really there. so the stock market has to crash every once in awhile to get rid of all that newly created imaginary wealth....

damn. i could go on and on about how all these financial systems built upon nothing is complete bullshit.

SSI is a scam, look in to it's beginning and see how many workers paid into and see how many pay into it now. I will help you out, in the beginning in 1935 when it was created there was not much work to pay for this program, it was an insurance policy to protect they elderly.

In 1950 there were 16.5 people that were paying for one person to collect there benefits. This allowed them to pay for the elderly and no one really thought about the future.

Now we are down to 2 workers paying to have one person collect. If you can add you will see that this is a true ponzi scam. There are not enough workers to fund the program.

Anyone can say not true, but not many will look at this program and see how is was created from thin air. In fact when SSI was created, the average person lived to an average age of around 50-52, give or take.

This is why you could only collect this money when you were 62. They the government did not think people would live long enough to collect their benefits. Guess what?, the seniors lived much longer than anyone expected.

To make matters even worse as I said before, you now only have 3.3 workers to 1 that pay into the system. SSI again, is a ponzi scheme, our entire government should all be put in prison.

while there is a parallel between Social Security and a Ponzi scheme, on a fundamental level, you are very wrong, and it?s worth explaining why.

First, the parallel. Social Security taxes current workers to pay Social Security benefits for current retirees. In other words, the new entrants into the Social Security system, the young workers, pay off the previous entrants, the older workers. And despite the fact you have a Social Security ?account?, there is no necessary link between what you paid into the system in taxes, and what you receive.

That?s very similar to the structure of a Ponzi scheme, where new investors pay off the original investors. As long as enough new ?victims? are brought into the scheme, it keeps growing and growing. But when the new investors runs out, the Ponzi collapses. Analogously, the slowdown in population growth puts pressure on Social Security finances.

But there is one enormous difference between Social Security and a Ponzi scheme: Technological change. Over the past century, new technologies have enabled the output of the country to grow much faster than its population. To be more precise, the U.S. population has more than tripled since the early 1900s, while the U.S. economic output has gone up by more than 20 times.

This long track record of technology-powered growth has enabled the enormous rise in living standards in the U.S. and other developed countries. In fact, this increase in productivity?output per worker?is the key fact which gives us our way of life today.

Assuming that technological progress continues over the next 70 years, and output productivity growth continues over the next 70 years, the finances of Social Security are relatively easy to fix. A fairly minor cut in benefits, combined with a relatively small increase in taxes, will bring the system back into balance again. (the latest Social Security report projects a 75-year deficit of $4.3 trillion. That sounds like a lot of money, but over 75 years it?s roughly $60 billion a year?not chicken feed, but not overwhelming).

But here?s the rub. Ultimately our ability to make good on the ?Ponzi-like? nature of Social Security depends on the continued march of technological progress?and in particular, innovation which boosts output and living standards. If we leave the younger generation a good legacy?a sound scientific and technological base, combined with an innovative and flexible economy and an educated workforce?then Social Security is not a Ponzi scheme. The economy grows, and there?s more than enough resources for everyone.

But if instead we?the current generation?invest in homes, flat-screen televisions and SUVs, then we don?t leave the next generation with the technological ?seed corn? they need. If the technological progress slows, then Social Security does turn out to be Ponzi-like?with unfortunate consequences for everyone

http://www.businessweek.com/the_thre...s+%2B+analysis

http://money.cnn.com/2009/01/06/news...tune/index.htm

http://www.crossingwallstreet.com/ar...ial_secur.html

http://www.chron.com/disp/story.mpl/...k/6261418.html