Monday, May 24, 2010

Ponzi Scheme

Here is an article to explain how the ponzi scheme started.

My comment
A ponzi scheme usually offer an attractive return. The operator take the money from the investors to pay back the earlier investors. As long as the ponzi scheme continues to grow exponentially in size, the operator is able to carry on. During this time, the operator continues to siphon off the money. When the new money stops coming in, the ponzi collapses.
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7 comments:

Anonymous said...

Will Lanbanking act lik Ponzi scheme?
Left to be seen, as mounting complaints in most of the Internet Blogs that I visit.

May 24, 2010 7:05 PM
Divali said...

"Author revisits simple life after Madoff fraud"

http://www.reuters.com/article/idUSN2414721520100524?feedType=RSS&feedName=everything&virtualBrandChannel=11563

May 24, 2010 9:17 PM
Anonymous said...

More troubles will surface in year 2010,2011 and onwards.
Stay prudent and you are in safe heaven.Greed will only harm you.

Y2.10a

May 24, 2010 9:46 PM
Anonymous said...

Some people consider the CPF as like a ponzi scheme because

i) The interest is double or triple that of the market rate. How did the CPF get such high interest from when the market rate is so low?

ii) The amount of CPF contribution far exceeds the CPF withdrawal. It is difficult to withdraw from CPF other than using it for mortgage.

iii) Difficulty in withdrawing from CPF is further increased by the raising Minimum Sum and the introduction of CPF Life which prohibit withdrawal because the amount in retirement account is to be used to buy an annuity.

iv) Finally, from January 2011, CPF members can opt for their CPF monies to be transferred to their nominees' CPF accounts upon the former's demise. Thus, the monies in CPF continue to be "lock" in the system instead of being withdrawn.

Can anyone verify that the monies in CPF balances are truly backed by tangible assets? Or are these merely "paper" assets in which withdrawals are based on earlier cash inflows just like a ponzi...

May 25, 2010 2:44 PM
Anonymous said...

CPF is backed by a printing machine and so is your money you are holding.

May 25, 2010 7:57 PM
Anonymous said...

The modern debt-based money system is a BIG Ponzi.

May 26, 2010 9:47 PM
Anonymous said...

No leadership in the World operates any Ponzi Scheme. There will not be any citizenry that will accept any leadership that does it, Ponzi Scheme that is.

patriot

May 27, 2010 9:40 PM

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