Variants of the Ponzi scheme are rife today – ie, using new investments (or loans) to pay off old investors (or banks). As long as interest rates are low and money is easy, it may work. When credit collapses, bye bye to the debt zombies.
Here’s a documentary on the originator of the Ponzi scheme – an ex-con with an actual profit-making idea that went haywire.
Click here for more economics articles, satires, and features.