5 ms·
> With a ponzi scheme, there is no underlying investment. So the pool of capital never grows. The "pool of capital" never grows here, either. Landlords get mor
by jfrunyon 5y ago
> With a ponzi scheme, there is no underlying investment. So the pool of capital never grows.
The "pool of capital" never grows here, either. Landlords get more assets (houses), but also more liabilities (deposits).
A Ponzi scheme is perfectly capable of having underlying investments, by the way. I'm pretty sure Madoff bought houses with his money, too.
> Which they could invest for an 8% or so return
Where the heck do you get an 8% return with no risk? I want in.
> The fact that is has been around for so long
How many decades did Madoff's ponzi scheme last?