The Amazing Mr Ponzi

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.

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One response to this post.

  1. […] 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 […]

    Reply

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