Interesting that you mention the example of the intelligent investor joining the Ponzi scheme out of a sense of resentment that the dumber investor had made money.
And, thanks for fleshing out some of the issues with ponzi schemes, so much of the stuff out there is just repetition of what a ponzi scheme is, very few people take the time to explore why they work, how sustainable they are, why people still fall for them in spite of their dangers being well publicised etc
Interesting point that most investments/companies will have some component of ponzi scheme to it, as part of it's sucess will partly be due to further investments by others.
banking system is like a ponzi scheme, but runs on trust rather than fear or greed.. if we all tried to take our cash out at the same time the banks would collapse, the money is invisible and not real...
If you could identify that old investors are being paid directly from new investors money, and not via some return on real investment, then you could identify the ponzi and arrest the parties involved.
But you could argue that the wests welfare system is a ponzi. Pensions are being paid directly from taxation and have not been invested anywhere. So as billybob pointed out in his comments it really is most vs least influential.
@Live2Break It's a con "investment" where the money just goes back and forth between the investors without actually investing in something.
Say you invest $1000 and a month later I give you $1500. What you don't know is that this $500 is just money from someone else who also invested $1000. So, because your satisfied you invest the $1500 back into the scheme and meanwhile more people are starting to do it too. When I have $10mil worth of "investments" and I take all the money and flee.
@Live2Break It depends on what country you're in; Not all countries have laws against pyramid companies/ Ponzi schemes, but most modern capitalist countries do;
Bernie Madoff, or what's his name, did this and he is in prison for life, after destroying the life of so many people.
Some would call for capital punishment, but not me;
It's your own greed and stupidity that makes you fall for it!
If anything is too good to be true, well it just isn't true! It's a bloody fraud!!! Be careful ;-)
I don't know if you could work a Ponzi scheme forever but since what you are doing is using high rates of return to make other people advertise for you, if you could figure out which clients had high degrees of networking and influence and which clients had low degrees of networking and influence you could reward better advertisers( higher returns) and punish worse advertisers (lower returns or losses).
@billybobhobnob101 Instead of just rewarding first in and screwing last in - you would have a more complicated program that rewarded most influential and screwed least influential- also even for the influential constant high rewards are probably less reinforcing than a schedule that includes some lower returns and even losses.
Interesting that you mention the example of the intelligent investor joining the Ponzi scheme out of a sense of resentment that the dumber investor had made money.
And, thanks for fleshing out some of the issues with ponzi schemes, so much of the stuff out there is just repetition of what a ponzi scheme is, very few people take the time to explore why they work, how sustainable they are, why people still fall for them in spite of their dangers being well publicised etc
theporksicle 4 months ago
Interesting point that most investments/companies will have some component of ponzi scheme to it, as part of it's sucess will partly be due to further investments by others.
Zpock1 1 year ago
banking system is like a ponzi scheme, but runs on trust rather than fear or greed.. if we all tried to take our cash out at the same time the banks would collapse, the money is invisible and not real...
robmct22 1 year ago
How do I go about starting one? Do I need to be registered?
onjoFilms 1 year ago
If you could identify that old investors are being paid directly from new investors money, and not via some return on real investment, then you could identify the ponzi and arrest the parties involved.
But you could argue that the wests welfare system is a ponzi. Pensions are being paid directly from taxation and have not been invested anywhere. So as billybob pointed out in his comments it really is most vs least influential.
Thanks for posting these videos.
NeddLudd1811 1 year ago
what is a ponzi scheme??
Live2Break 1 year ago
@Live2Break It's a con "investment" where the money just goes back and forth between the investors without actually investing in something.
Say you invest $1000 and a month later I give you $1500. What you don't know is that this $500 is just money from someone else who also invested $1000. So, because your satisfied you invest the $1500 back into the scheme and meanwhile more people are starting to do it too. When I have $10mil worth of "investments" and I take all the money and flee.
noxure 1 year ago
@noxure so it is a trick to make money??is it illegal or legal???
Live2Break 1 year ago
@Live2Break It depends on what country you're in; Not all countries have laws against pyramid companies/ Ponzi schemes, but most modern capitalist countries do;
Bernie Madoff, or what's his name, did this and he is in prison for life, after destroying the life of so many people.
Some would call for capital punishment, but not me;
It's your own greed and stupidity that makes you fall for it!
If anything is too good to be true, well it just isn't true! It's a bloody fraud!!! Be careful ;-)
skinnyjohnsen 1 year ago
I don't know if you could work a Ponzi scheme forever but since what you are doing is using high rates of return to make other people advertise for you, if you could figure out which clients had high degrees of networking and influence and which clients had low degrees of networking and influence you could reward better advertisers( higher returns) and punish worse advertisers (lower returns or losses).
billybobhobnob101 1 year ago
@billybobhobnob101 Instead of just rewarding first in and screwing last in - you would have a more complicated program that rewarded most influential and screwed least influential- also even for the influential constant high rewards are probably less reinforcing than a schedule that includes some lower returns and even losses.
billybobhobnob101 1 year ago
I could not have said it better.
ThePresidentialTouch 1 year ago
You have done well. Das Vidania.
ThePresidentialTouch 1 year ago