Monday, August 6, 2012

Why did Bernie Madoff go to prison? NOT Congress?


'The taxpayer: That's someone who works for the federal government but doesn't
have to take the civil service examination.' ~ Ronald Reagan
BERNIE MADOFF
SOCIAL SECURITY
Takes money from investors with the promise that the money will be invested and made available to them later.
Takes money from wage earners with the promise that the money will be invested in a "Trust Fund" (Lock Box) and made available later.
Instead of investing the money Madoff spends it on nice homes in the Hamptons, yachts, political favors, etc.
Instead of depositing money in a Trust Fund the politicians transfer it to the General Revenue Fund and use it for general spending and vote buying.
When the time comes to pay the investors back Madoff simply uses some of the new funds from newer investors to pay back the older investors.
When benefits for older investors become due the politicians pay them with money taken from younger and newer wage earners.
When Madoff's scheme is discovered all hell breaks loose. New investors won't give him any more cash. He goes to jail.
When Social Security runs out of money the politicians try to force the taxpayers to send them some more; or they cancel S/S to all those who paid into it claiming that it is an "entitlement".
Bernie Madoff is in jail.
Politicians remain in Washington .. with fat medical and retirement benefits.