Are Bitcoins a Ponzi scheme? That's what the headlines in the media suggest the Securities Exchange Commission is alleging. However, the SEC is simply investigating whether the new crypto-currencies are being used as a tool to lure investors into an illegal investment scheme. Whether or not this is true, the smear campaign against alternative currencies continues. In a press release, the SEC stated "Investors should understand that regardless of the type of investment, a promise of high returns with little or no risk is a classic warning sign of fraud." Well, don't tell that to Fannie and Freddie. At least China got out.
And there was a natural gas explosion on an unmanned rig off the coast of Louisiana on Tuesday. The blaze has been described as "out of control." No injuries were reported on the nearby jackup rig, but a natural gas cloud and a very large light sheen was reported. The operator of the well stated no "oil" was spilled, but again it's a natural gas rig. Curiously the well that exploded was a sidetrack well, which is usually used to overcome an engineering problem with the original well. We'll stay on top of this story as it develops.
And, we have a Bloomberg-gate update. That would be the scandal where Bloomberg reporters were allegedly spying on Bloomberg terminal users, including such power users as Ben Bernanke and Tim Geithner. Well, the current attorney general of New York, Eric Schneiderman, who was funded by George Soros, is now investigating the matter.
The AG position is one that Eliot Spitzer held before becoming governor. Spitzer is now once again seeking elected office as New York City Comptroller, to oversee the city's $140 billion pension fund. Oh, and Mayor Bloomberg himself is suing the current Comptroller. Break out the popcorn, because we smell a Gangs of New York-style fight brewing here. Bob talks dysfunctional politics with Lew Rockwell. And Perianne profile the dysfunctional city of Detroit, as well.
