Krugman: Entire Wall Street a Ponzi Scheme

"Wall Street is in collapsing down to it's news."

What?

But Krugman is right. Investment banking is a Ponzi scheme - I've been saying it in a different way for months: they created bubbles and burst them.

what a scam. good thing all my relatives liquidated or are in the process of liquidating all equities.

also many hedge funds are liquidating as high net worth clients have grown outraged by what's been happening on wall street. trust factor is gone.

Social Security is also a Ponzi Scheme.

Goesaround,

Your english sucks, and you're stating the obvious. We know hedge funds are liquidating, we know the market is horrible. Try to keep the conversation related to how whatever you post is related to NYC real estate.

"Social Security is also a Ponzi Scheme."

Cramer thinks so, but it's not. It's a pay-as-you-go scheme. It's not structured as an investment; it's structured as operating cash flow. Very different.

That is, they're not telling you that you're making x% on your investment, then taking your money and paying that 10% someone else. What they do is simple income accounting - what comes in goes out.

The entire social security problem could be fixed with two changes: eliminate the wage cap, and peg benefit increases to inflation rather than wages. Bingo, it's solvent for another 200 years.

Investing in equities = giving money to thieves

Now steve thinks he is a social security expert. Sure, just eliminate the wage cap, and let's see how that affects business and employment. Ridiculous.

Are you calling me a thief juiceman?

Everybody's happy adding fuel to the fire on the way up, but when things go the other way all the whiners start looking for scapegoats. What you end up with is a big tumbling mass of anger, irrationality, ignorance and jealousy that rolls along for a year or two but eventually breaks up. Happens every time.

Monday morning quarterbacks

we are in for a "lost decade"...trust should be the world's number 1 priority. We've had over 20 years of false trust, a credit bubble which illusioned us all. At least 5-10 years of falling asset prices as the days of leverage are history.

Dow5000, 2009, Dow 3000-4000 early 2010 and we stay there like japan for 10 years.

positivecarry, not unless you are an executive of a public company

the nikkei went from 40K plus to 8K where it still is 18 years later. And the only difference is they're a creditor nation, not a debtor nation. With that in mind, who knows, Dow 1K would even be possible.

goesaround - you made the mistake with your meds again. You take the blue one in the morning and red one at night, not the other way around.

waverly, whats the difference between u.s. and japan? you don't think the S&P drop to 600 and dow to 5,000? really? your a fool like the rest of these materialistic over in-debted masses ~brainwashed~

Yeah, Henry Blodgett should be the moral compass for Wall Street. He should close his mouth, make restitution to all of the people who lost money listening to his lies and then just go away.

goesaround, are you a hippie?

anyone who is in-debted deserves will be enslaved because they lived beyond their means, but the bankers who enslaved them won't come out much better. we are all one.

Please don't take the brown acid. There is something wrong with the brown acid. Goesaround, please put down the brown acid.

Goesaround,
You sound like such a hippie farmer, oh wait, you are one. The world will never get as bad as you think. Sorry to be the one to tell you that.

"let's see how that affects business and employment"

Not very much. It's already set at around $100,000. Doesn't affect too many people, but the cap makes it highly regressive.

"You take the blue one in the morning and red one at night, not the other way around."

LMAO.