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One thing nice about market crashes is that it is a catalyst for causing Ponzi schemes to implode and we get to be entertained. I wonder if there's any Madoff-scale Ponzi schemes out there.
Ponzi schemes use new investor money to pay off older investor returns, so I'd assume the market's performance isn't really relevant other than scaring investors into suddenly wanting to withdraw money leading to exposure and explosion.
One thing nice about market crashes is that it is a catalyst for causing Ponzi schemes to implode and we get to be entertained. I wonder if there's any Madoff-scale Ponzi schemes out there.
Bernie Madoff's Ponzi scheme didn't "crash" any market nor was it "exposed" by any market "crash", so what's your point?
i think he is saying the reverse . when markets crash they tend to expose a lot of the fraudulent accounting being done by unethical people in the business .
all is well covered up when markets are doing fine .not sure of his point regardless but i think that is what he meant . the fact is though we didn't crash so it is still unknown .
Ponzi schemes use new investor money to pay off older investor returns, so I'd assume the market's performance isn't really relevant other than scaring investors into suddenly wanting to withdraw money leading to exposure and explosion.
The DOW itself fits that definition currently, more or less.
i think he is saying the reverse . when markets crash they tend to expose a lot of the fraudulent accounting being done by unethical people in the business .
all is well covered up when markets are doing fine .not sure of his point regardless but i think that is what he meant . the fact is though we didn't crash so it is still unknown .
Will the next crash expose Ponzi schemes? Or does the current activity of the DOW constitute a Ponzi Scheme? The last stage of a bubble operates like a Ponzi scheme.
The DOW itself fits that definition currently, more or less.
Well chalk up another person who doesn't understand what a Ponzi scheme is. Look it up, understand it and then you'd see why your assertion is beyond rediculous
Ponzi schemes use new investor money to pay off older investor returns, so I'd assume the market's performance isn't really relevant other than scaring investors into suddenly wanting to withdraw money leading to exposure and explosion.
The market returns absolutely have an impact. The down turn and the financial crisis drove redemption request which imploded Madoff
I would consider it to be more of a pyramid scheme.
You do know the Dow is an informational piece right? It's not a business, it's not a real functioning entity but rather a source to look at a poor slice of the us public trading company performance
The stock market as a whole wouldn't come close to meeting the definition of a pyramid scheme either
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