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**grizolsemn** · 12-21-2008, 05:15 PM

A Scheme With No Off Button
By CATHERINE RAMPELL

So, what’s the exit strategy?

Mathematically speaking, Ponzi schemes are doomed. They work by bringing in new investors to pay off old ones. In pure form, there’s never any actual business activity; the money just rolls backward from ever-increasing numbers of investors to keep up the appearance of profits. This means the scheme requires an infinite supply of new suckers.

If you think about it, wasn't the entire recent global economy just a giant Ponzi scheme --with all its illusory prosperity and profit? It all ran on promises of money, and one day the money turned out to be not there.

12-21-2008, 05:15 PM	#7
grizolsemn Join Date Nov 2005 Posts 467 Senior Member	A Scheme With No Off Button By CATHERINE RAMPELL So, what’s the exit strategy? Mathematically speaking, Ponzi schemes are doomed. They work by bringing in new investors to pay off old ones. In pure form, there’s never any actual business activity; the money just rolls backward from ever-increasing numbers of investors to keep up the appearance of profits. This means the scheme requires an infinite supply of new suckers. If you think about it, wasn't the entire recent global economy just a giant Ponzi scheme --with all its illusory prosperity and profit? It all ran on promises of money, and one day the money turned out to be not there.
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