Ponzi!

June 16, 2004 1:32 PM

What's a Ponzi Scheme? Enron was described as a Ponzi scheme. Social security has also been described as a Ponzi scheme. The originator of this scheme was Carlo Ponzi who led an interesting life and bought a nice pink house with his ill-gotten gains. There's even a website where you can read about him in more detail, including the intro to his autobiography.
posted by dodgygeezer (9 comments total)

Throughout the entire adventure, one fact is clear: Ponzi was one self-assured motherfucker. Never seen without a snappy suit and stylish straw hat, he smiled, waved his arms, and charmed a room with a quality that made everyone who met him hold their money over their heads and wave wildly. He was just that kind of guy, the guy who you knew would never do you wrong... well, until he did. At his trial, Ponzi was said to constantly smile and chuckle to himself as if enjoying a private joke, and burst out laughing on several occasions as compatriots and ex-staff talked about how completely false his "Securites Exchange Company" had been.
posted by Keyser Soze at 3:04 PM on June 16, 2004

I don't quite get how "privatizing" social security would be any better than just saying "the social security taxes are repealed, save for your own retirement you dolts."

Because we know how well THAT works out.
posted by Veritron at 3:34 PM on June 16, 2004

Speaking of Enron:

Enron gouged Western customers for at least $1.1 billion

FERC orders California to refund $270 million to Enron, others

FERC Chairman Was Twice Appointed By Bush At Ken Lay's Request

"No matter how cynical you get, it is impossible to keep up."
posted by homunculus at 4:22 PM on June 16, 2004

Just wanted to say that I thought this was a wonderful post. I always wondered what the term meant; now I know. Thanks, dodgygeezer!
posted by .kobayashi. at 6:44 PM on June 16, 2004

can you say "amway"? how about "alticor"? "quixtar", anyone?
posted by quonsar at 8:48 PM on June 16, 2004

I always thought that Amway (now Quixtar) was a pyramid scheme more than a Ponzi scheme. Have I missed something?
posted by Dreama at 10:15 PM on June 16, 2004

Of course, every scam in the world is alive and well on ebay. I remember seeing a Ponzi-variant just the other day... the idea being that each person pays $20 into a pot, goes on a list and for every x people who sign up the top person gets whatever is being 'sold'.

Bad scams fascinate me. It's strange how so many people continue to fall for them when they're so well documented.
posted by reklaw at 1:52 AM on June 17, 2004

As I usually do, I'd like to plug a site to which I've been a longtime member: The Make Money Fast Hall of Humiliation...8 years old and still alive, apparently.
posted by thanotopsis at 4:21 AM on June 17, 2004

Did Cheney know about Grandma Millie?
posted by homunculus at 6:16 PM on June 17, 2004