Is Wall street Running a Ponzi Scheme?

Dies ist Nugget #3 aus Prof.  Kotlikoff’s sensationellem Buch ”Jimmy Stewart is Dead. Ending the World’s Ongoing Financial Plague with Limited Purpose Banking”, März 2010. Weitere Nuggets folgen.

“A Ponzi scheme does two things: (a) paying (rather than earning) above-market returns to entice new contributions to continue to pax (rather than earn) above-market returns  and (b) using a valuation scheme that is so clearly different from the market’s valuation as to constitute prima facie evidence or fraud. …

So is Wall Street running a Ponzi scheme? YES!

IMF Cuts Global Bank Loss Estimate to $2.3 Trillion From $2.8 Trillion

Endlich Good News: statt 2,8 Billionen $ wurden nur 2,3 Billionen vernichtet!

In its April 2010 Global Financial Stability Report, the IMF reduced the estimated bank writedowns and loan provisions in 2007-10 to US$2.3 trillion from US$2.8 trillion in October 2009, citing improving economic and financial market conditions’ contributions to higher bank capital positions. Two-thirds or US$1.5 trillion of the expected losses had been realized by the end of 2009.