Takes money from investors with the promise that the money will be invested and made available to them later.
Takes money from wage earners with the
promise that the money will be invested in a "Trust Fund" (Lock Box) and made available later.
Instead of investing the money Madoff spends it on nice homes in the Hamptons and yachts.
Instead of depositing money in a Trust Fund the politicians transfer it to
the General Revenue Fund and use it for general spending and vote buying.
the time comes to pay the investors back Madoff simply uses some of the
new funds from newer investors to pay back the older investors.
benefits for older investors become due the politicians pay them with
money taken from younger and newer wage earners to pay the older
When Madoff's scheme is discovered all hell breaks loose. New investors won't give him any more cash.
When Social Security runs out of money the politicians try to force the taxpayers to send them some more; or they cancel S/S to all those who paid into it.
Bernie Madoff is in jail.
Politicians remain in Washington .. with fat medical and retirement benefits.