What is a Ponzi Scheme? It's basically a financial scheme where the first in get all the money, and the last in lose everything. The first in are paid by the money invested by the last in, and since they're making money, it makes it look legitimate, drawing even more investors into the scheme. Also called a "pyramid scheme", it is the slimiest of slimy dealings, because the perpetrator knows exactly what he's doing.
This is what Bernie Madoff has admitted he did to his investors. He has basically said that the money from the last investors "is gone", probably into an offshore account somewhere where he can get it after he gets out of prison.
Our government has said that we, the taxpayers, have to give to the bankers (who are, by the way, part of that top 1% that owns 24% of the U.S.) $700 Billion of our hard earned dollars. Not that we really have any hard earned dollars anymore, because jobs are flying overseas faster than a supersonic jet.
So who is actually getting this money? If you look at what has happened already, it's the executives and their managers. AIG paid for theirs to go to a couple of luxury conventions. All of them are using "retention" to explain multimillion dollar bonuses for the very CEO's who caused this problem in the first place. Why on earth do they want to "retain" these crooks?.
So far, the ones paying the taxes have had no relief from the scheme. We are left in the hole, paying for it for the rest of our lives, while those who are benefitting loll around in million dollar mansions and fly in private jets to beg Congress for even more of our money.
Does that not sound like a Ponzi scheme to you? It's a classic robbing Peter (the U.S. Taxpayer) to pay Paul (the already wealthy banking and auto executives). In a real Ponzi scheme, once the money is gone, there is no more profit for those at the top. This one is even worse, because they can keep bilking the American taxpayers for generations.
This wasn't just a casual firing for Ponzi. ... He was caught and spent another 2 years in an Atlanta prison. ... The scheme was called the Ponzi Plan. ... Another version says that Ponzi got help from his second cousin, Col. ... One of the most elaborate schemes that derived from Ponzi's scheme is called the Pyramid Scheme. ...
Today's Ponzi frauds have become more sophisticated than before. ... The Ponzi scheme usually entices new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent. ... The Ponzi scheme was named after Charles Ponzi, who duped thousands of New England residents into investing in a postage stamp speculation scheme back in the 1920s. Bernard Madoff was definitely America's modern day Ponzi. ... Bernard Madoff's family would later turn him in to authorities in December 2008, blowing the whi...
One famous scandal was the Madoff case, a huge Ponzi scheme that resulted in billions of dollars of losses. ... A Ponzi scheme is functioning with paying the vested returns to existing investors from the funds contributed by new investors. ... Nevertheless, Ponzi scheme requires a consistent cash inflow from new investors, when it's hard to do so or when clients start to request the large amount cash redemption, the scheme collapse (S.E.C). ... Another important role in the Madoff case was the Auditor. ... Friehling pleaded guilty for his role in Madoff's Ponzi scheme in November 200...
Madoff was arrested for his involvement in a Ponzi scheme that had been going on for about 20 years. ... The motivation one would have to research the topic on the Bernie Madoff Ponzi scheme would be a result of the scandal constantly being spoken about on the news. ... He tells them that the whole thing was "basically, a giant Ponzi scheme" (PBS) and that he had "absolutely nothing," (PBS). ... On March 12th, 2009, Madoff admits to the courtroom that he was running a Ponzi scheme for many years. ... Bernie Madoff's Ponzi scheme became known as, "the largest fraud...
This paper will scrutinize the starting point of the Ponzi scheme, history of Bernie Madoff, and the outcome of his dishonest business. ... The scheme is named after Charles Ponzi, who became notorious for using the technique in 1920. ... On five instances Harry Markopolos tried to tell the SEC that Bernie was running a Ponzi scheme but no one responded. ... Most Ponzi schemes flop quite rapidly, but the Madoff scheme lasted for about twenty years. ... Another result of the Madoff outrage is the talk of pellucidity and liability. ...
Madoff ran a Ponzi scheme for nearly 20 years that amounted to $65 billion. ... For Bernie Madoff to instigate a Ponzi scheme of this magnitude, his infamous heist requires several important character traits: extensive knowledge, fearlessness for risk, and an absence of empathy for others' wellbeing. ... Carl did just that because he was attracted to Bernie's street smarts and determination. ... That single investment by Shapiro led to the biggest Ponzi scheme in US history. ... I just went along " (New qtd. in Fishman). ...
Yet, forty-nine years later, he confesses to the largest ponzi scheme scandal the world has ever known. ... Therefore, the largest ponzi scheme in human history is worth revisiting. ... Economic Exchanges and the Need for Trust The term "ponzi schemes" originated in the 1920's when Italian immigrant Charles Ponzi was arrested for managing to conn more than 30,000 people out of 10,000 million dollars through a postage selling pyramid scam (Robb, 2012). Ponzi, despite the fact that he served several years behind bars, upon being released, managed to scam again by selling the swa...
The main relationship Scott rehashes is Crist's very public business dealings with Scott Rothstein, a main player in a 2009 Ponzi scheme. ... " Scott appears to "twist" the truth to make it seem as if Crist was directly involved in the Ponzi scheme and may have even monetarily gained from the involvement. In actuality, despite the ad, when asked if he believed Crist was involved in the Ponzi scheme Scott declined to answer. ...
To do that, it is important to understand who it is that profits the most from the federal bailout money. Believe it or not, the one who profits most from the bailout money might actually be the consumer! ... That is why you might be the one who profits most from the bailout money given to the banks. ... It was a shame that bailout funds were required, and there are those who must be held accountable. ... No one is getting rich from the bank bailouts, and there is plenty of blame to go around, but when you sign that mortgage, or that new car loan, or that extension on your line of credit, ...
