Search This Blog

Saturday, November 3, 2012

Carlo Ponzi, Alias Uncle Sam by Gary North

Every Ponzi scheme involves five elements:

  1. A promise of statistically impossible high returns
  2. An investment story that makes no sense economically
  3. Greedy investors who want something for nothing
  4. A willing suspension of disbelief by investors
  5. Investors' angry rejection of exposures by investigators

Strangely, most Ponzi schemes involve a sixth element: the unwillingness of the con man to quit and flee when he still can. Bernie Madoff is the supreme example. But Ponzi himself established the tradition.

Posted via email from iPT Perpetual Traveler

No comments:

Post a Comment