"The Bezzle" Defined + Examples

Realization of The Bezzle always starts slowly, but it is an exponential process, because as the pool of liquidity starts to drain that has allowed the hiding of these crimes more and more dead bodies start to surface, and they all stink. This results in more and more people starting to question if they have been scammed; a process that, once it begins, becomes exponential in scope and force.

This is where Government comes in, because only government has the lawful power of deadly force. Only the government has the right to preemptively investigate and arrest people for fraud and embezzlement.

When government fails to discharge its duties in this regard over long periods of time, we wind up where we are now. The "sea of liquidity" covers the dead bodies for a time, and the government refuses to drain the swamp or arrest those who it knows are committing evil acts. Witness Madoff and Stanford, both of which were known to the government for more than a decade and yet no enforcement action was taken. Witness the Fannie and Freddie accounting scandals, which should have led to indictments, prosecutions and a shutdown of these institutions - but didn't.

clipped from market-ticker.org I keep getting emails asking me to define "The Bezzle" in a form that "ordinary people" understand, strongly indicating that I've failed in that regard thus far.  Let's try again.... Here are some examples of "The Bezzle": Liar loans: The borrower can't possibly pay off the loan on the original agreed terms and the institution that makes the loan "passes it" to an investor fully aware that the borrower almost certainly lied about credit capacity. Overly-rosy projections about growth in property values: The speaker is either incompetent (doesn't understand exponents - a fundamental mathematical concept) or is intentionally deceiving people.