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#1
07-20-2011, 10:58 PM
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I studied this stuff enough in college I couldn't help myself. A Ponzi scheme is a operation that pays returns to separate investors, not from any actual profit earned by the organization, but from their own money or money paid by subsequent investors. The Ponzi scheme usually entices new investors by offering returns other investments cannot guarantee, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors to keep the scheme going. 
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Chicken, what kinda friggin' scam you runnin' here? 
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