Market Related Articles » Ponzi Scheme
The most famous scam in American history was the Ponzi Scheme of 1920. In this scam, Charles Ponzi, an immigrant to this country, promised investors 50 percent interest in ninety days. This was an amazing 200 percent annual rate of interest, even ignoring compounding interest! And, for a while, he actually was paying 50 percent interest for ninety days.
People started lining-up to turn their money over to him, and altogether 40,000 did, investing an average of $300 each.
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