The Next Ponzi Scheme? Take a Close Look at the U.S. Banking System, Says Michael Parness, CEO of TrendFund.com
Posted on: Wednesday, 1 April 2009, 08:00 CDT
"Take a look at the definition of a Ponzi scheme: a fraudulent investment operation that pays returns to investors from the money of subsequent investors rather than from profit," said Parness. "Anyone remember how Madoff and Stanford Group finally collapsed ... when people started taking their money back."
"What if everyone were to go to their bank tomorrow and demand their money back immediately? The banks are insolvent and this run on banks would force many or most of the bigger banks to fail completely and disintegrate, because the true number for a government bailout of the banks is actually
Parness believes that a drastic overhaul of the banking system needs to take place immediately. "Nationalizing the banks is the first step, because it will allow the government to cut out the middle man, guarantee all deposits, give out loans with lower rates and better terms, and renegotiate mortgages. Most banks are insolvent and surviving on borrowed monies, meaning the public's accounts. So to try to continue to maintain shareholder equity is foolish."
"The banking system has been the biggest Ponzi scheme on earth for a long time and the only difference is that it has had Wall Street and the government's blessing," said Parness. "What we are witnessing is the death of the banking system as we know it, and perhaps, unfortunately, the death of the economic system as we know it."
Parness recently turned heads on Your World w/
A high school dropout, who once lived homeless on the streets,
SOURCE TrendFund.com
Source: PR Newswire
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