Where is the Money

Bernie Madoff “made-off” with $50 billion of peoples’ hard-earned money. I just want to know: Where is the money?

I’m beginning to believe there is no money–or at least, not as much as we’d like to believe.

The great bastions of the industrial revolution are toppling around us like so many houses of cards. The banking , real estate, mortgage, retail, automobile, credit card, and insurance industries are all in very dire financial straits. Value that was there 3 years ago is nowhere to be found.

They say that anytime you see a rat, there are at least 3 more lurking nearby out of sight. When we find a leading hedge fund operating as a ponzi scheme, do you think they are the only ones? Especially considering just about anything they could have invested in has tanked. Stay tuned.

The problem as far as I can see has been too much creative accounting over the last 10 years or so. It used to be so simple: companies sold products and services. Sales brought them revenue, which they used to pay their workers, pay their bills, and replenish and improve the products and services so they could sell more. Then, bookkeepers started learning problem-solving skills in grad schools when all they need is arithmetic. Instead of just counting the money and keeping track of it, they learned how to make the company look good to investors and the public. All this regardless of how the company is doing in reality.

I saw it with Peace Corps volunteers, I ‘ve been guilty of it myself, and we see in in big business now–the smartest people come up the the most unsustainable ideas.

This is what Einstein was getting at when he said that “any intelligent fool can make things bigger and more complex, but it takes a touch of genius–and a lot of courage to move in the opposite direction.”

It is going to take some serious courage to face the financial facts and go back to living within our means.

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2 responses to “Where is the Money

  1. yes, where is the money. a 1$100 bill can blow away in the wind, but a billion has to be spent or moved. It must be in a bank, or turned into “tings” or partially lost in bad investments.
    The only practical way to make it truly, 199% disappear is for your partner to be organized crime. A real possibility here which no one seems willing or capable f grasping!

  2. I see your point, and you’re right. We don’t have honest accountants anylonger, I wouldn’t blame it all on the education they receive but more on the greed we possess as humans. Not too long ago I was station at The Legal Aid Society and what I learn was how to compete financially within one foundation. Meaning, when it came time to seek grant; the grant proposals were done by individual sectors instead of the organization in whole. Because of this other major sectors of the organization suffered, to most of us staying within the means is easy what I can’t stop to wonder about is will we learn our lesson this time around. Or will we need another depression…

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