If you are new to this blog, you are invited to read first “The Largest Heist in History” which was accepted as evidence and published by the British Parliament, House of Commons, Treasury Committee.

"It is typically characterised by strong, compelling, logic. I loosely use the term 'pyramid selling' to describe the activities of the City but you explain in crystal clear terms why this is so." commented Dr Vincent Cable MP to the author.

This blog demonstrates that:

- the financial system was turned into a pyramid scheme in a technical, legal sense (not just proverbial);

- the current crisis was easily predictable (without any benefit of hindsight) by any competent financier, i.e. with rudimentary knowledge of mathematics, hence avoidable.

It is up to readers to draw their own conclusions. Whether this crisis is a result of a conspiracy to defraud taxpayers, or a massive negligence, or it is just a misfortune, or maybe a Swedish count, Axel Oxenstierna, was right when he said to his son in the 17th century: "Do you not know, my son, with how little wisdom the world is governed?".

Monday, 13 April 2009

Pundits are slowly making progress...

The FT (full text) and Professor Roubini have started noting what has been obvious for months (and for years in terms of predictable causality): that the current financial mess has resulted from a collapse of the giant pyramid scheme. Better late than never. However they still fail to identify that the actual mechanism of a global pyramid was loan to deposit ratio above 100%. So still some way to go: but watch this space.

The scale of pyramid collapse is running into quadrillions of US dollars. Refer to posts below.

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