Appraising Risks to Growth: AIG Should Have Failed


The U.S. Congress ought to blush about the AIG situation as should Fed Chair Bernanke. The amount of money spent defending AIG’s bad bets is incredible. But there is something else at stake here. At issue is the question of whether the government knows what it is doing. People need evidence that the Fed and U.S. Treasury are operating a “best practices” recovery plan.

Madoff, Rubin and Wall Street's Ponzi World


The disconcerting story of Robert Rubin's career overlaps the maddening story of Bernie Madoff's livelihood: Both men held elevated positions on Wall Street, and both believed in an approach to capitalism that is dangerous to the common good. In Madoff's case he turned the general architecture of the stock market into a personalized business, thus making himself liable for reproach that the general market has largely escaped: formal Ponzi status. What percentage of the American public understands this?

Can Markets Be Moral Under FED governance?


Capitalism without morality is a terrible sight to behold. Prudently responsible market capitalism is superior to communism because it preserves the sowing and reaping equation without governmental force. Merit deserves its reward just as demerit and ineptitude must be penalized to preserve the legitimacy of law and show the way to goodness.

Madoff and the Decline of Meritorious Capitalism


How is it that the accomplished wife of a veteran journalist specializing in financial planning loses her entire 401k to Bernie Madoff’s Ponzi scheme? Sadly, the lady also loses her job because her employer — a North Boston area charitable foundation with a demographically loaded mission — has lost its assets in the Madoff scandal.

A Massive Ponzi Scheme Uncloaked


Is any observer of Wall Street surprised that a former chairman of the Nasdaq Exchange has been charged by prosecutors for running a Ponzi scheme in which by his own estimate some $50 billion has been lost for investors? Is anyone shocked that this operation allegedly went on for years right under the collective noses of SEC officials?

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