When friends and family are gathered together for the holidays this month, one of the little children may come up to you and ask the following probing question:
"What's a Ponzi scheme?"
Since you visited the Think Billion$ blog today, you'll have the answer. Not only a answer, the answer, since it is an SEC approved answer.
According to the Securities and Exchange Commission: "Ponzi schemes are a type of illegal pyramid scheme named for Charles Ponzi, who duped thousands of New England residents into investing in a postage stamp speculation scheme back in the 1920s."
So, that is the textbook definition of a Ponzi scheme. Not answered, of course, is why Bernard Madoff did it. Will we ever truly know?
Interestingly, billionaire bad boy Mark (Momma) Cuban, has repeatedly called the stock market a Ponzi scheme over the years.
Twice as interesting is the fact that both Bernie Madoff and Mark Cuban are now in trouble stock market-wise, SEC-wise and otherwise this year.
