by Karl Denninger
An off-color joke about not dropping bars of soap appears appropriate here....
HOUSTON – Former jet-setting Texas tycoon R. Allen Stanford, whose financial empire once spanned the Americas, was sentenced Thursday to 110 years in prison for bilking investors out of more than $7 billion over 20 years in one of the largest Ponzi schemes in U.S. history.
U.S. District Judge David Hittner handed down the sentence during a court hearing in which two people spoke on behalf of Stanford's investors about how his fraud had affected their lives.
Now how about the millions of Americans who had their economic lives destroyed by the various bankster games around the nation with the housing bubble and other scams?
That is a Ponzi Scheme. It is one as certainly as what Stanford did. It is predicated on exponential expansion, effectively using new suckers to pay off the old ones, and is guaranteed to eventually fail just as was Stanford's.
Perhaps someone can explain how issuing unbacked credit in ever-increasing amounts, which is exactly what happened, is factually different in form and function from what Stanford was convicted of doing.
Have at it folks.