[ETWolverine]

Hi folks.

So, does anyone know what the biggest ponzi scheme in history is?

In order to answer that, we need to understand what a ponzi scheme is.

Essentially, a ponzi scheme is where someone gets people to invest in something by promissing them a certain rate of return. Once the investor's money is in, he pockets it. Meanwhile, new people invest and the con man uses some of the new investment money to fund payments to the older investors, while again pocketing the rest. The scheme breaks down when the amount that has to be paid out to investors in order to meet the rate of return that was promissed exceeds the amount of new money coming in as new investments.

Does that ring a bell for anyone?

We have been hearing for the past week or so about Bernie Madoff (who "made-off" with other people's money) and his $50 billion dollar ponzi scheme. News agencies and financial experts have called this "the largest ponzi scheme con in history".

But they are wrong. It is not the largest one in history.

Don't get me wrong. $50 billion is a huge number, and it is going to have a terrible effect on the economy as a whole. Lots of people have been wiped out by this con. And Madoff should be punished to the fullest extent of the law for his crime. But it ain't the biggest. Not by a long shot.

What if I told you there was a much bigger ponzi scheme... 100 times bigger... still taking place, and the people responsible for it will never be punished?

It's called Social Security, and it is a ponzi scheme that is estimated at $53 TRILLION dollars.

Think about it. The Federal government took your money and "invested" it for your retirement, supposedly. WHat actually occurred is that the government actually used that money for other purposes. And in order to pay the current crop of retirees, who's money has already been used for other purposes, they are using YOUR money to cover the promissed returns. Meanwhile, they will use your children's investments to pay YOU. And so on... until the amount that is necessary to cover the payouts is greater than the amount being invested into the system.

This is the EXACT definition of a ponzi scheme... and it is more than 100 times bigger than the Madoff ponzi. And there is not a chance that anyone responsible for this $50 trillion con is ever going to pay for their crimes. And it IS a crime, whether it has been legalized or not.

What say you?

Elliot

[N0help4u]

I agree and I also believe that insurance companies are basically Ponzi schemes as well.
This latest one in the news, people have been saying they lost 2 million. It is horrible how people can be so heartlessly ruthless.
The thing about Social Security is so many people are scared to death to try something different. They say that what Bush wanted to do that has been successful in other countries people here turned down because we are afraid to really try something different.

[ETWolverine]

Yes, NoHelp, that pretty much is the crux of it. People would rather be ripped off for trillions of dollars than try something new. I'm not sure whether it is due to laziness or fear, but the effect is the same.

[N0help4u]

Definition of insanity-Doing the same thing over and over and expecting a different result.

[wildandblue]

And a lot of people never collect a thing, I mean they die before they are actually retirement aged. And they are all the time wanting to raise the elegibility age, used to be 55, then 60, 65, 72 etc. If you "invested" being promised money at 55, shouldn't you still be allowed to collect?
And 401K's are not any different, you are being promised a retirement return by the same people who are mismanaging things now. I've always said, every company ever, is exactly the same: it's run by a couple of guys and their idiot brother in laws and the guys bimbo girlfriends. None of them actually work, either they hire other people to do that part. Only the names and faces change, not the basic idea. Now if these people were your own relatives you would not give them any money. So how can it be a good idea to turn your life's savings over to them?

[magprob]

The entire world is just a big casino with a 60 trillion dollar chip about to hit the table. Winner takes all.

[wildandblue]

Well a lot of the "losers" have battleships and nuclear weapons.

[tomder55]

Yup $53 trillion and a GDP of something around $13- $14 trillion when the economy is healthy .

Our children and grandkids will curse our names.

[magprob]

yup $53 trillion and a GDP of something around $13- $14 trillion when the economy is healthy .

Our children and grandkids will curse our names.

Not to worry. They will always have a secure job in the military.

[excon]

Hello El:

I'll adimit SS is a crime, if you'll admit that waterboarding is a crime.

excon

[twinkiedooter]

Nope. Waterboarding is a sport. Just ask Richard Chaney.

[magprob]

Nope. Waterboarding is a sport. Just ask Richard Chaney.

As scary as that seems, I'm afraid it may be the truth!