Sortiario
Fair Trade Organization
   |
Posted - 2007.04.29 13:06:00 -
[1]
Edited by: Sortiario on 29/04/2007 13:19:04
To scam or not to scam?
I've read the first couple of pages in this thread, and I must say that Ponzi really did a great job when he invented this:
A Ponzi scheme is based upon the fact, that greed overrules sound judgement when it comes to investing your money. When investor A puts 5 million credits into the pool, and extracts 6 million a few days later, he'll probably reinvest, as he sees it is a good investment. When he keeps reinvesting, hoping to earn more and more, and having a higher payout than any alternative, his greed takes over and leaves his rational judgement shattered to the point where he'll keep reinvesting all his returns.
As all investors get payouts (from the other investors), the money flow builds up, and eventually, the owner of the scheme sits with billions and billions of credits at his disposal. Then, one of three things happens:
 Originally by: www.wikipedia.org
The catch is that at some point one of three things will happen: (a) the promoters will vanish, taking all the investment money (less payouts) with them; (b) the scheme will collapse of its own weight, as investment slows and the promoters start having problems paying out the promised returns (and when they start having problems, the word spreads, and more people start asking for their money); or (c) the scheme is exposed, because when legal authorities begin examining accounting records of the so-called enterprise, they find that much of the "assets" that should exist, do not.
The most hilarious thing is that it works. The OP has clearly stated that it IS a ponzi scheme, and the only way he'll really benefit from it is by doing option a) in above. Why do people attend then? Obviously, they'll keep gambling their money, because they know they'll get their returns, and thus feeding the scheme with investments.
This scam is so perfect, so psychological, that i'll dare not to call it a scam. Manipulation of human needs ftw! 
___________________
Sortiario Communication Consulting - SCConsult
Communication advisory service |