Madoff Ponzi Scheme

[392cobra]

[Wes Tausend]

...

I like it, Fred.

There are ponzi schemes everywhere one looks. The trouble with them is that they only work pretty good, until somebody tries to take all the money back out at once.

Social Security, which is a dribble, only works if folks take out less than "new investors" and former interest put in. But might be less than a dribble back in, in the future. And every politician that ever was, has robbed it.

Same for the stock market; only works if folks take out less than "new investors" put in. Notice where that went when everybody tried to cash out at once. A steady 10% drain wasn't so bad.

The best ponzi schemes to run, and own, are casinos. Folks always take out less than they put in. I.e. 60/40, house favor...

Wes


...

[Fred Douglass]

.....83% for the House v.s. 17% for the suckers---this according to the article I (stealthily*) read last year in Bahstin's own "Pravda"------aka the Boston Globe. The paper was a huge supporter of Taxachusetts' governor ("Cadillac" Deval) Patrick's plan to insert gambling casinos into our fair commonwealth.

I think the article was citing BOTH historical references to that glorious Soddom-in-the-Desert, Lost Wages, Nevada AND also the owners/operators of Foxwoods, etc. down in Connecticut.

Hell, state and Federal taxes are Ponzi schemes, any way you look at them. Oh, BTW, Ponzi started out in Massachusetts, didn't he? Ar, ar,r,ar!

*I'd never get caught in public reading that Bolshie rag!!!!

Carrion,

[Ron61]

I can't believe they are letting that jerk stay in his mansion instead of prison. But some judge that he has probably bought, refused to let them send him to jail yesterday. Poor man has suffered enough humiliation with all of the negative press and on and on.

Ron

[Tommy]

For those who may not know, there's a difference between the house odds of winning on any particular game and the percentage of the player's money they keep at the end of the day. Here's an example with roulette. The player's odds of winning a simple even/odd bet are 47.4%, or almost 50/50. So if he starts with $100 and makes one hundred $1 bets, he'll win back his own $1 bet plus $1 from the house an average 47.4% of the time. So after having bet the entire $100 once, he'll have about $94 left. But if he keeps betting, on average he'll have less after each round of betting. If he continues for thirteen rounds of betting, on average he'll have about $50 of his original $100 left. If he quit after the first round, the house kept just 6% of his money. If he quit after the thirteenth round, the house kept 50% of his money. If he kept gambling until is was all gone, the house kept it all. Not bad for the house on a game with only a 5.2% advantage.

[bomelia]

Madoff should be charged with 2nd degree man slaughter for every person that has and will kill themselves over this.

Mike

[4RE KLR]

Originally Posted by bomelia

Madoff should be charged with 2nd degree man slaughter for every person that has and will kill themselves over this.

Mike

I agree! This guy needs to be made an example out of in a very big way.