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To: GraceZ who wrote (234138)12/23/2009 3:51:43 PM
From: dealmakr Respond to of 306849
 
Ponzi Scheme definition from Wiki;

A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors from their own money or money paid by subsequent investors, rather than from any actual profit earned. The Ponzi scheme usually entices new investors by offering returns other investments cannot guarantee, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors to keep the scheme going.

The system is destined to collapse because the earnings, if any, are less than the payments. Usually, the scheme is interrupted by legal authorities before it collapses because a Ponzi scheme is suspected or because the promoter is selling unregistered securities. As more investors become involved, the likelihood of the scheme coming to the attention of authorities increases.

What do you do when the Legal Authorities are the ones in control of keeping the scheme going?

If we could have Trusted in Congress not to raid the Social Security Trust Fund things might have been different.

An article about Social Security revenues not keeping up with the payouts, starting to look a bit Ponzi to me;

economics21.org

dealmakr