PONZI IS NOT DEAD -THE NATION MAY BE

When we may speak of the citizenry getting stiffed, we have always considered Ponzi as the greatest example of scamming thieves of all times. Today he would only be considered to be a piker. He convinced investors that he would double their money, taking from everyone and giving a little to early investors, but Carlo Ponzi kept all of the rest for himself.Old Carlo Ponzi would now be hiding behind a corporate financial shield stealing from everyone who, in the normal scheme of things, would either be unable to buy a home or a car or be stupid enough to believe that they were consolidating their debts-all of which would be unavailable to people who, while having some cash and property, began as being credit unworthy for loans.

Nowadays, Ponzi would be considered as a leading financial genius with schemes such as subprime mortgages-where the banks and other "respectable" lenders advance mortgages to non-credit-worthy people at a low rate which later increases through an adjustable rate. The borrowers, who had an inability to pay for the initial period of time, let alone pay when the higher rate automatically came upon them, didn't realize that they were taken when they signed the mortgage or loan papers.

The scam is critical enough to likely put our nation into a recession unless it finds a resolution. Unfortunately, as usual, the thieves are working it out so that the loss becomes the responsibility of the borrowers or taxpayers who are at the short end of the stick. What happens is that the CEOs of the lenders are forced to quit or are terminated and are required to take the blame and are required to take a few million dollar bonus in gratitude for their inefficiency which brought a lot of money to their companies which will look for the government to bail them out.

I sort of feel that the efficient methodology of the Loan Sharks [you saw that recently in the TV series The Sopranos has been adopted and improved upon by the financial geniuses, credit card scammers, and other so-called responsible lenders, and unlike the government they have done it with a greater degree of efficiency. Their goal was solely predetermined by their craving for profits, their personal corporate bonuses and perks. The words we usually apply to this kind of activity are "depraved greed."

I had always been taught and required to consider that the grant of mortgages was primarily predicated upon the borrower's financial ability to pay back over the terms of the mortgage.

The fraud or illusion that a method had been found to share property ownership with the poor or disenfranchised was as usual unattainable to those who were deluded that they were finally getting a piece of the American Dream. Every investor looking for a return on fanciful funds, many of which went down the drain, learned that their dividends were reflected in the billions of dollars of write-downs and not available for their retirement planning.

With the nation falling into a possible recession or foreclosure and with the roof starting to fall in, the economic predators' spin masters showed that their love for their fellow man was destroyed by the nation's Spendthrifts [read that to be "suckers" who felt that the lenders were on their side] and that the lenders were the "good guys" who were duped. Isn't greed wonderful? Shame that Jimmy Stewart is no longer around to play the borrower.

Now to compound the fraud inherent in intentionally lending money to people who would undoubtedly be unable to pay you back, the lenders, like loan sharks having full knowledge of the high risk, then proceeded to bundle the subprime lending into funds which they then sold as a Structured Investment Vehicle [SIV-now there's classic three-letter terminology for "let me put both of my hands into your two pockets"].

So after the subprime mortgage market began to weaken with a failure in foreclosures, the lenders and those who stole the funds decided to either "write down billions of dollars on their financial records or to go bankrupt without fully knowing exactly how many of these phony mortgages are really in foreclosure. But, at least, they were able to come up with solutions to protect their own gains. That way they can steal with honor.

If an individual broker or seller or nonmember of the club or glorified thief had pulled the same thing, the US Attorney General, the SEC and State law enforcement agencies would be up his backside with indictments, litigation and always with the pompous press rally telling everyone that the society has been saved. The Administration's initial response called for a voluntary moratorium on foreclosures demonstrating the same success as their program for abstention by saying "No" to youthful sex.

So what can we look forward to? The banks and lenders could agree to pay back some of the money they scooped, or they may suggest that we should preserve our economy by having another type of Administration Savings and Loan salvation using taxpayer money from all of us-including money from the poor or middle class who were the losers in the original scheme to profit from those who could not understand or afford the original theft.

Now add to that the continuing bargain basement purchase from foreign investors [aka "bloodsuckers"] either by way of advance fundings or purchases of stock in the banks and lending institutions.

One of the most sickening instances is the foreign high-jacking of America. For example, the country which holds the trade deficit money and which sent us toxic toys, foodstuffs, drugs, and many other recalled items-China-has lent 5 billion in capital to Morgan Stanley together with the generosity of its chairman and CEO to forgo his $40 million dollar bonus for the year because his company posted multibillion dollar losses on his watch. JP Morgan must be looking up or down from where he is with pride that his company did not lose its perspective in taking the investor or taking advantage of its customers in a big way. Other reporting disclosed further so-called foreign investment. Guess that political donations will have to increase to protect Wall Street raiders to secure high government office-although the prices will be going up.

The up-and-coming horse thieves must be on the alert since the Congress, the Federal Reserve and all of the Federal Agencies which were in place to prevent the theft are now coming down with all sorts of preventative remedies to lock the barn doors. The poor who had seen a glimmer of hope now are starting to recognize that the remedies are not for them but to cover up the failure and indifference from their "protectors" who really were their "predators."

The Justice Department in a nationwide collaboration with State Attorneys General should immediately commence grand jury hearings to indict for grand larceny and other associated crimes and to institute civil class actions for those without the ability to pay attorney fees and costs on behalf of those whose dreams were destroyed to recover their losses together with punitive damages--litigation to hold the individual liable even where the corporate shield goes bankrupt.

The predators should not be allowed to benefit from their actions in destroying the lives of others and throwing our economy into a tail spin. Using the economic weapons of mass destruction of our society, they are undeserving of a Federal buy-out-let us for once protect the security and sanity of America's citizens.

They stole-not only the boiler room people they employed and then threw out of their jobs when the fallout came upon them-it is obvious-read their ads-read their loan papers-read their due diligence in lending the money-don't just let them quietly leave with million dollar bonuses-put them in jail for the maximum and require restitution of the money "earned" by them and their companies. Require the turnaround repurchase of the bargain basement foreign governments and countries-using real values.

Once again, when we recognize that the United States is probably the world's Major consumer Nation-if we go under due to outsourcing, or shoddy or toxic products or Ponzi scams, so will many of the other countries, including the foreign governments which may have held us hostage by their ownership or control of the American corporate structures. Let's start with a somewhat clearer slate with the control of our pride and integrity by eliminating the corporate thieves among us with a vengeance.

This may not be appealing to the stock market players-but it may be better for our economy than bailing out our Ponzis, our home-grown thieves and the foreign predators-by bringing about an infusion of creativity and reliability back into our system. It would materially reduce the increase in our homelessness and the misuse of Americans now serving three and four tours of duty and would pave the road back to solvency and a new sense of morality.