Treasury Secretary Henry Paulson won the 2009 Nobel Prize in Economics for proving the Greater Fool Theory this week. The theory states that no matter how foolish an investment someone makes, there is always a greater fool who will buy the investment and absorb the loss.
In a Rose Garden ceremony, President Bush said, "Henry has found the Ultimate Fool, the Federal Government."
News of the discovery was cause for rejoicing on Wall Street where hedge funds and investment banks have built evermore complex strategies to try and prove the Greater Fool theory. The fact that some in their number were lost along the way and are not here to enjoy the discovery does not seem to have dampened the celebration. Stocks posted huge gains on the news.
In the afterglow of the celebration, one thing is certain: Capitalism as we know it is dead. Congratulations, Henry; long live the Ultimate Fool!
BTW, I've got some dotcom stocks I need to sell...