It's a scam!

Much has been already said and written about the undercurrents of the financial crisis affecting the US and global economy. The closer one analyses it, the more it looks like a Ponzi scheme. I won't be able to describe it better than what I found on a recent blog:

http://aotearoaawiderperspective.wordpress.com/2008/11/13/the-two-trillion-dollar-black-hole/

How could such a strong economy fall into the trap of creating super bubbles, and then collapsing under its own weight? The answer is “lack of adequate regulations” in the financial system. Signs of self-implosion have been noted periodically in other sectors, but every time the answer was the expansion of trading zones (from national to regional, to continental, to global) in order to attract new people putting money into the pull, and thus keeping alive the illusion of perpetual outstanding returns.

The only difference now is that the inputting resources have reached their limits. The global population of potential contributors has been exhausted for the moment – until the purchasing power of the consumer markets like China, India, Russia and Brazil are brought up to par with the western counterparts.

Unfortunately, this crisis will not be the last one of this type. History will repeat itself years later, in a slightly different form, but fundamentally the same, because greed and irrational behaviour is embedded in the human nature.