Monday, October 28, 2013
Ponzi Scheme and Pyramid Scheme
From Wikipedia (at least at the moment, as it can be edited by anyone at any time):
Ponzi -"The promoter sells shares to investors by taking advantage of a lack of investor knowledge or competence, or using claims of a proprietary investment strategy which must be kept secret to ensure a competitive edge."
"if it unexpectedly loses money (or simply fails to legitimately earn the returns promised and/or thought to be expected) and the promoters, instead of admitting their failure to meet expectations, fabricate false returns and, if necessary, produce fraudulent audit reports."
Pyramid - "relying as it does on a mistaken belief in a nonexistent financial reality, including the hope of an extremely high rate of return. "
"A pyramid scheme typically collapses much faster because it requires exponential increases in participants to sustain it"
And these schemes are why the below statements from the Chocolate Jesus are a lie.
The Tea Party fought tooth and nail to get this information out. Instead they were lambasted and called names, even until the last few weeks when Sen. Ted Cruz and his political followers and constituents were called terrorists for "shutting down the government." NONSENSE. It's checks and balances and I suggest if you do not like these protections against tyranny you take a one way boat trip to Cuba!
Posted by A New Yorker at 7:20 PM