Another Gotcha Moment, Suckers

AP: The Obama administration says it will use bailout money repaid by large U.S. banks to support additional capital infusions for smaller banks.

Treasury Secretary Timothy Geithner says the repayment proceeds expected from some of the largest banks will be used "to reopen the application window" for banks with total assets under $500 million.

Whoa. Let Berry the Sceptic dust off his economics degree and ask a question. To whit: isn't this what Bernie Madoff is in jail for?

All right, it may not be the exact definition of a Ponzi scheme, but it's as close as you can get. Let's say a buddy of yours lends your money to another guy. He tells you, "Don't worry. He'll pay it back in a couple of months. It's something I like to call 'repayment.'"

A couple of months go by and the guy shows up with your money. He hands it to your friend and your friend turns around and gives it to another guy. You're standing there empty handed and say, "Wait a sec. I thought that was my money. What happened to the 'repay' part of 'repayment?'"

To which your buddy says, "Oh. You thought you would get the money back."

"Yeah," you say. "You told me I'd be 'repaid.'"

"Since when? I said they'd repay the money. I never said they'd repay it to you."

"But it's my money."

"No it isn't," he says. "It's mine now. You gave it to me."

"But--"

"Listen man, I hate to break it to you but somebody's gotta say it: it's not my fault you're a sucker."

And he's right.