yego.me
💡 Stop wasting time. Read Youtube instead of watch. Download Chrome Extension

How A Ponzi Scheme Works


less than 1m read
·Nov 8, 2024

So you may have heard about Ponzi schemes in the news. Everybody knows they're illegal, but you might not understand how they work. So Ben is here to show us.

To start off, Ben gets a few people to invest their money with him. At the end of the year, he gives those clients amazing returns that beat every other investor in the market. Needless to say, the investors are thrilled. In fact, they're so ecstatic about all the money they're making that they tell all their friends and family about it too, who tell their friends, who tell their friends.

In the stock market, most investors make money some years and lose money others. But Ben's Ponzi scheme, yeah, it never loses money. In fact, it always beats the market by a huge margin.

But the returns he pays to these people aren't from actual profits. He just takes the money these new guys invest and gives it to these guys. But as soon as you can't get enough new money from this group to pay these people, then the whole pyramid starts to crumble because they're not getting paid anymore.

Ben, and these guys who invested first, made a killing, but these folks lost all their money. So the next time a guy like Ben tries to get you to invest in something that sounds too good to be true, it probably is. Just ask Ben. Wahoo!

More Articles

View All
Ethical Rudeness | The Philosophy of Mencius
We live in an age in which freedom of speech and saying what we want is seen as one of the most important tries of human being. But does that make rudeness a virtue? While I think that people should have freedom of speech and that unpopular opinions shou…
David Crosby is Star Struck | StarTalk
So we established that there’s an entire Geek Side to David Crosby that I never knew until that moment. So I wanted to know, was he able, did he care, did he want to fold this geekitude into his music? So I asked, “What has his passion for science inspir…
How to communicate with Khanmigo | Introducing Khanmigo | Khanmigo for students | Khan Academy
What we’re going to do in this video is talk about how you can use Kigo if you need help or if you are stuck on something. So, let’s say you’re having trouble in your math class. You might want to go to the activity “Tutor Me Math and Science” because we…
Gaining the Trust of the Gorillas | Dian Fossey: Secrets in the Mist
KELLY STEWART: Dian Fossey was definitely a pioneer. I do not think that word has been overused. Before that, nobody had done a long-term study of gorillas. Nobody had studied them month after month and year after year. IAN REDMOND: She wanted to be the …
The Man Who Accidentally Killed The Most People In History
One single scientist created three inventions that accidentally caused the deaths of millions of people, including himself. Not only that, they decreased the average intelligence of people all around the world, increased crime rates, and caused two comple…
The Spirit of Takumi | National Geographic
[Music] While I was in Hiroshima, Japan, I met craftsmen who embodied the Japanese tradition of takumi. Takumi means, in Japanese, a master craftsman, but it is so much more than that. It’s not just a job; it’s a passion; it’s a total dedication to a sing…