We had all better learn this simple definition of a Ponzi Scheme.
A Ponzi scheme offers a high return to investors using the funds of newcomers to make payments to earlier subscribers, and collapses when the supply of suckers runs out.
It is a succinct definition of how a large part of the UK (and indeed world) economy has worked over the last few years.
24 October 2008 at 4:25 pm |
[...] the firm? They will be long gone when it unravels. It’s just a twist on the classic Ponzi Scheme. This problem completely short-circuits the libertarian logic of enlightened self-interest [...]