Comments on: How Long Could a Ponzi Scheme Survive? http://www.businesspundit.com/how-long-could-a-ponzi-scheme-survive/ Entrepreneurship, Startup Companies and Business Philosophy Wed, 10 Mar 2010 00:29:28 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Iqbal Latif http://www.businesspundit.com/how-long-could-a-ponzi-scheme-survive/comment-page-1/#comment-13198 Iqbal Latif Wed, 01 Apr 2009 23:02:10 +0000 http://www.businesspundit.com/?p=9589#comment-13198 Without a market meltdown no one would ask Madoff any questions, the chances are fair that the set-up would outlive him. He was the first amongst the equals. He came from the bluest of the bloodlines as far as money management goes in NY. He was top philanthropist who managed the money of the shrewdest of investors. He was a pious thief and this is a kind of pedigree that is exceptional. A convicted felon has a record he had none, rather the only record he had was managing money of the smartest. However, all said pedigree of this global outbreak is in one way was so unique that unlike the past depression the characteristic of this contagion is designed to ruin of the richest, the chances were good that he may have been outed. This annihilation of implicit wealth is a standard act of zero sum game where moral hazard demanded that the richest amongst the population should suffer the most. So in a way it is act of providence to build a level playing field for everyone. This is a crisis but in my opinion represents an opportunity too. Without a market meltdown no one would ask Madoff any questions, the chances are fair that the set-up would outlive him. He was the first amongst the equals. He came from the bluest of the bloodlines as far as money management goes in NY. He was top philanthropist who managed the money of the shrewdest of investors. He was a pious thief and this is a kind of pedigree that is exceptional. A convicted felon has a record he had none, rather the only record he had was managing money of the smartest.

However, all said pedigree of this global outbreak is in one way was so unique that unlike the past depression the characteristic of this contagion is designed to ruin of the richest, the chances were good that he may have been outed. This annihilation of implicit wealth is a standard act of zero sum game where moral hazard demanded that the richest amongst the population should suffer the most. So in a way it is act of providence to build a level playing field for everyone. This is a crisis but in my opinion represents an opportunity too.

]]> By: Devdas http://www.businesspundit.com/how-long-could-a-ponzi-scheme-survive/comment-page-1/#comment-13137 Devdas Mon, 30 Mar 2009 12:56:18 +0000 http://www.businesspundit.com/?p=9589#comment-13137 That would depend. What about the energy and waste Ponzi schemes which have been going on for generations? That would depend. What about the energy and waste Ponzi schemes which have been going on for generations?

]]> By: William http://www.businesspundit.com/how-long-could-a-ponzi-scheme-survive/comment-page-1/#comment-13131 William Mon, 30 Mar 2009 05:13:16 +0000 http://www.businesspundit.com/?p=9589#comment-13131 Well, the biggest Ponzi scheme has been running for more than fifty years. It's the UK's National Insurance scheme. http://www.hmrc.gov.uk/nic/ Well, the biggest Ponzi scheme has been running for more than fifty years.

It’s the UK’s National Insurance scheme.

http://www.hmrc.gov.uk/nic/

]]> By: Matt SF http://www.businesspundit.com/how-long-could-a-ponzi-scheme-survive/comment-page-1/#comment-13095 Matt SF Fri, 27 Mar 2009 15:51:49 +0000 http://www.businesspundit.com/?p=9589#comment-13095 A Ponzi Scheme depends on the current number of "investors" scheduled for payouts, and how much those payouts are scheduled to be. Madoff made 1% per month like clockwork (or so the victims said), so it really depends how many clients he had. Eventually, it would have collapsed on it's own because he could not have found new investors. The market going south could have done it. As well as many of his clients were entering retirement age, so they may have been withdrawing more than normal. A Ponzi Scheme depends on the current number of “investors” scheduled for payouts, and how much those payouts are scheduled to be. Madoff made 1% per month like clockwork (or so the victims said), so it really depends how many clients he had. Eventually, it would have collapsed on it’s own because he could not have found new investors.

The market going south could have done it. As well as many of his clients were entering retirement age, so they may have been withdrawing more than normal.

]]> By: WillyJohnson http://www.businesspundit.com/how-long-could-a-ponzi-scheme-survive/comment-page-1/#comment-13086 WillyJohnson Fri, 27 Mar 2009 04:40:41 +0000 http://www.businesspundit.com/?p=9589#comment-13086 The biggest Ponzi scheme on record is still ongoing. Its unfortunate that the American public doesn't get it...but Canadians do. http://tinyurl.com/cyt5pe The biggest Ponzi scheme on record is still ongoing. Its unfortunate that the American public doesn’t get it…but Canadians do. http://tinyurl.com/cyt5pe

]]> By: Max http://www.businesspundit.com/how-long-could-a-ponzi-scheme-survive/comment-page-1/#comment-13082 Max Fri, 27 Mar 2009 03:13:10 +0000 http://www.businesspundit.com/?p=9589#comment-13082 The math is against him. His need for money increases exponentially. Since he didn't put his money in the market the decline didn't make a difference. The math is against him. His need for money increases exponentially. Since he didn’t put his money in the market the decline didn’t make a difference.

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