1. The Financial Sector: Ten Fatal Flaws “When the capital development of a country becomes a by- product of the activities of a casino, the job is likely to be ill- done.” …. John Maynard Keynes

2. Charles Ponzi and the Ponzi Scheme

3. Five Sectors of the Global Economy 1.Primary Sector 2.Secondary Industry Sector 3.Service (Tertiary) Sector 4.Information (Quaternary) Sector 5.Nonprofit (Quinary) Sector

4. 1. Primary Sector, Forestry

5. 2. Secondary Industry Sector

6. 3. Service: The Tertiary Sector

7. 4. Information, Quaternary Sector

8. 5. Nonprofit, Quinary Sector

9. Wall Street

12. Casino Slots, A Reckless Economy

13. American Progress

14. 10 Fatal Flaws in the Financial Sector 1.Too Big to Fail Banks 2.Unchecked Deregulation 3.A “Markets Know Best” Federal Reserve 4.Real Estate Bubble & Out of Control Lending 5.Mountains of Debt 6.Dicey Financial Products 7.Financial Speculation 8.Moral Hazard & Lack of Transparency 9.Deceptive Rating Agencies 10.Bloated Compensation Plans

15. Fatal Flaw #1: Too big to Fail Banks

16. F.D.I.C.

17. Shadow Banks

19. Federal Reserve, Lender of Last Resort

20. Goldman Sachs

21. Fatal Flaw #2: Unchecked Deregulation

22. Commodities Futures Modernization Act, 2000

23. Fatal Flaw #3: A “Markets Know Best” Federal Reserve

24. Federal Reserve System

25. Alan Greenspan, Chair Federal Reserve, 1987-2006

26. The Punch Bowl

27. Inflation, United States

29. Fatal Flaw #4: A Real Estate Bubble & Out of Control Lending

32. Mortgage-Backed Security Issuances

34. Growth in Mortgage Loan Fraud

35. Home Price Trend

38. UK House Prices

44. Fatal Flaw #5: Mountains of Debt

51. Fatal Flaw #6: Dicey Financial Products

54. Futures Trading, A Derivative

55. Southwest Airlines Uses Futures Trading to Manage Fuel Costs

57. Volume of CDOs

59. Email from Deusche Bank CDO Trader

61. Credit Default Swaps

62. Credit Default Swaps (CDS)

63. Gambling

64. The Financial Sector: A House of Cards

65. Fatal Flaw #7: Financial Speculative Mania

66. Speculation

67. Residential & Non-Residential Fixed Investment

68. Fatal Flaw #8: Moral Hazard & Lack of Transparency

69. American International Group AIG

70. Fatal Flaw #9: Deceptive Rating Agencies

71. McGraw Hill

73. Credit Rating Agencies Downgrades

74. Fatal Flaw #10: Bloated Compensation Plans