Re: [OPE] Madoff Ponzi scheme

This paper http://reality.gn.apc.org/econ/creditcrisis.pdf attempts to look at the relationship between the 'normal' operation
of the financial markets and Madoffs activities
"During the bull market the financial system as acts as a vast Ponzi scheme. Any
excess of deposits by savers over and above the current needs of industry and the
state are translated into prots and bonuses. Savings are converted into current
consumption revenues of the banking community."
________________________________________
From: ope-bounces@lists.csuchico.edu [ope-bounces@lists.csuchico.edu] On Behalf Of Paul Zarembka [zarembka@buffalo.edu]
Sent: Wednesday, December 22, 2010 1:49 AM
To: Outline on Political Economy
Subject: [OPE] Madoff Ponzi scheme

I have received the following query and wonder if anyone has a good lead for a reply:

"I've been doing some research on the Madoff Ponzi scheme, and am trying to develop a theoretical framework to advance my understanding of why Madoff's clients did what they did.... I read John Cassidy's HOW MARKETS FAIL. Interesting , but not what I was looking for. I would appreciate it if you would recommend a text or two by a Marxist economist that would help me develop a theoretical framework. I know little about economics and less about quantitative modeling,..."

Paul Z.

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(V23) HIDDEN HISTORY OF 9-11, Seven Stories Press, 2nd ed. softcover
(V24) TRANSITIONS IN LATIN AMERICA (V25) WHY CAPITALISM SURVIVES CRISES
(V26) THE NATIONAL QUESTION AND THE QUESTION OF CRISIS
====>  Research in Political Economy, Emerald Group, Bingley, UK
====>  P.Zarembka, ed., www.emeraldinsight.com/books.htm?issn=0161-7230<http://www.emeraldinsight.com/books.htm?issn=0161-7230>
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