By Chris Martenson
Are we aware of Ponzi schemes. These are high payback schemes that pays back investors with investments of other takers. When the last investor comes in, he is left with nothing, because his investment has been used to pay off others.
This is pervasive these days: we have Bernie Madoff, Bear Stearns, the Libor scandal, the Eurozone crisis.
According to Warren Buffett, "It is only after the tide goes out when you learn who has been swimming naked" Paraphrased as, "it is when the pie stops expanding that you see a Ponzi scheme"
Expansion of credit, robust economy does not expose a Ponzi scheme; bad times does.
The complaint is these are not discovered because the regulatorslook the other way around.
Thus investors, caveat. Be wary, that in a card game or investment scheme, "the sucker there is you" And according to P.T. Barnum, every minute more suckers are born. Are you the one?
Bernie Madoff Ponzi scheme
Another look at Bernie Madoff Ponzi scheme
The originator of the scheme - Charles Ponzi
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