The reason Madoff was crucified is that the hypocrites need:

1) to vent their frustrations
2) a personal scapegoat, and
3) a public scapegoat

So crucifying Bernie is a 3-fer. What should have happened was Bernie got 50, Geithner got 50, Paulson got 50 (3-way split) and Summers got the chair.

Speaking of Ponzi schemes, which is what our administration’s entire economic policy is based upon, here’s the next one, courtesy of Cap & Trade:

If the Waxman-Markey (Cap & Trade) climate bill is signed into law, it will generate, almost as an afterthought, a new market for carbon derivatives.

That market will be vast, complicated, and dauntingly difficult to monitor. And if Washington doesn’t get the rules right, it will be vulnerable to speculation and manipulation by the very same players who brought us the financial meltdown.

Cap and trade would create what Commodity Futures Trading commissioner Bart Chilton anticipates as a $2 trillion market, “the biggest of any [commodities] derivatives product in the next five years.”.

So we crucify the little guy for tempting investors with too good to be true returns, but we exonerate those who up the ante in the world’s most egregious Ponzi scheme – the leveraging of derivatives.

This could almost fly if the Administration actually attempted to regulate derivatives or enact legislation to curb the leveraging of ficticious capital, but absent that, Bernie’s crucifixion can only be seen as the height of hypocrisy, as well as another diversion designed to focus attention away from the real culprits, similar to the way in which the millions in AIG executive compensation was designed to redirect the sheople’s ire away from the billions in backdoor derivative counterparty bailouts through AIG.

It always irks me when a money-managing F.A. blogger quips about how essential derivatives are to the market. Let’s ask the average taxpayer what Ben Franklin would do. In this column is what derivatives has done for me: ZILCH! And over in this column is what derivatives are costing me: 14 trillion, so far.
Hmmmm…what to do, what to do?

So Bernie gets life for pyramiding half a trillion, meanwhile taxpayers are on the hook for 14 trillion and nobody takes the fall for that, not the regulators, not the underwriters, not the raters, not the securitizers, and certainly not the economic Imperials.

And remember, Bernie’s customers were wealthy investors. There’s always risk in investing, and those who got out early made out big. But the average taxpayer never made a dime on the bailouts–never will. They got to lose big without ever coming to the table to gamble it away at all.

So who’s the bigger crook, Uncle Bernie or Uncle Sam?

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