Why Ponzi schemes never go out of fashion
- Despite high-profile collapses, pyramid schemes continue to proliferate. What are the warning signs for investors?
- Madoff’s demise is only the latest reminder of this ever-present, dark underbelly of finance. There are some key characteristics to these schemes, which hint at what to watch out for
MUMBAI : If I was a writer with aspirations of serving up a web-streaming series, here’s the storyline that I would propose. It’s the mid-1920s. After a crippling pandemic, the United States is seeing the kind of prosperity that it has never seen before. The financial markets are rallying. There’s a lot of easy money going around. In this environment, Bernie Madoff travels back in time and meets Charles Ponzi. Both get together to run the biggest Ponzi scheme of all time and so the story goes.