I fell down a rabbit hole after doing the NYT mini crossword. I looked up Bernie Madoff and came across the wiki page for Ponzi schemes. I have heard the phrase used before…I think? But I keep reading the wikipedia description over and over and I just cannot understand how it works.
In: 5
Me: Hi, I’m running a new investment firm. We pay 5% a month, that’s 60% a year!
You: Wow that’s great, I will put in $1000.
… 1 month later: Here’s your monthly 5% payment!
… 2 months later: Here’s your monthly 5% payment!
… 3 months later: I have disappeared with the rest of your money ha ha.
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