Ponzi schemes have been and always will be a CONFIDENCE game. Gain the confidence of your mark before you burn him.

President:I belive there is much to learn from each other if we can make a truce. We can find a way to co-exist. Can there be a peace between us?

Alien: Peace? NO PEACE!

President: What is it you want us to do?

Alien: Die... Die.

- Independence Day

I was shocked and dismayed –I think we all were- to learn that Goldman Sachs had been involved in whatever it was they did. I had always ranked them with unlicensed boxing promoters and taxi drivers in Cairo, as people who inspire one with absolute confidence.

I was visiting my poor mother in Somerset when I heard the news.

"You’re never going to believe this," I told old Longbottom the farmer. "Goldman Sachs defrauded investors out of more than $1bn by mis-marketing toxic sub-prime mortgage-related securities."

He looked at me with tears in his honest, weather-beaten old face.

"I don't understand it," he said, "but I know it's wrong".

- blog: Chase Me Ladies I'm in the Cavalry