Daily Investment Tips

Even after being sent to Jail, it seems Bernie Madoff will not go away easily. The man has given an interview to New York Magazine. In the telephone interview Bernie Madoff warned that the federal government is a Ponzi scheme.

Bernie is right, Governments are large Ponzi schemes. This is how the government works : Governments borrows new money to retire old debts.So long as there will be people willing enough to lend the government money this scheme will continue rolling. But if creditors pull the plug, governments go bankrupt. It has happened before in Argentina and other South American countries.

In a Ponzi scheme Early investors are paid out of money put in by later investors and when there are no new investors, the Ponzi scheme collapses.

A detailed explanation as to how US Government is a large Ponzi Scheme is at Seeking Alpha website.

I think during his case with the government Bernie Madoff should have declared to the court that his “investment” scheme was modeled directly after Social Security.

Read the whole interview at NY Magazine

written by Constantine Njeru \\ tags: Argentina, Bernie madoff, Creditors, Debts, Detailed Explanation, Federal Government, Government Money, Governments, Interview Magazine, Investment Scheme, Investors, Magazine Interview, New Money, Ponzi scheme, Ponzi Schemes, Seeking Alpha, Social Security, South American Countries, Telephone Interview

Investing school or class you attend will determine your success or failure. Maddof created the largest fraud in history, the question is where did the guy learn how to do what he did.

This cartoon tells it all

written by Constantine Njeru \\ tags: Bernie madoff, Cartoon, Failure, Fraud, Investing, Investing school, Ponzi scheme, Success