As Barack “Embalma” helps inject another trillion dollar infusion into the GDC (Global Derivatives Corpse) more and more economists, even Stiglitz, speak out about the insanity of the Geithner Ponzi scheme:

Nobel prize-winning economists Paul Krugman, a professor at Princeton University in Princeton, New Jersey, and Joseph Stiglitz, a professor at the Business School of Columbia University in New York, blasted Geithner’s plan for putting the taxpayer on the hook for losses with what they say is little likelihood of success.

“The Geithner plan works only if and when the taxpayer loses big time,” Stiglitz wrote in the New York Times this week. “With the government absorbing the losses, the market doesn’t care if the banks are ‘cheating’ them by selling their lousiest assets, because the government bears the cost.”

Krugman wrote in the Times last month that “Obama is squandering his credibility” with the plan.

The Geithner scheme merely opens the door for smaller hedge funds like PIMCO to play “rape the taxpayer” with the big boys like JP Morgan.

“One of the challenges has been that leverage has really been pulled away from the system and as a result the kinds of returns investors are looking for haven’t really been available,” said Ken Hackel, head of fixed-income strategy at RBS Securities in Greenwich, Connecticut.”

Thank you Ken, you’re right–the insane leveraging that directly caused the global economic collapse stopped momentarily in a rare lucid moment when banks, like RBS, came to their senses and realized they’re hopelessly bankrupt. This insight from the Royal Bank of Scotland whose City of London bailout was clearly the central theme in the G20 protests is really helpful.

“But it’s O.K. to come back into the casino and play now” says the G20 (code name “Geithner 20″). We have a new, no-risk shell game backed by unwitting taxpayers to help return to the risk-free leveraging and pump and dump schemes which have been the “hallmark of prosperity around the world” for the last 50 years.

We need the lesser pigs to come to the trough now and soak up the remaining derivative trash, and governments will follow Gethner’s lead and back it with taxpayer futures.

So there’s hope my friends. Hope floats. Maybe we can Float this thing ’til it’s 20 or 50 quadrillion and put doomsday off until we’re all dead and bloated and just let our grandchildren deal with it.

After all, borrowed time and delayed consequences has worked for the last 50 years, it can surely work for 50 more.

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