Charles Ponzi will forever infamously known as the con man of the 1920’s. Ponzi dealt with numerous amounts of investors who all trusted him to make them a profit on their investments. Unfortunately, Charles Ponzi was a crook from the start. He bought a total of $30 dollars in IPRC’s and stole about $30 million of his investor’s money. His brilliant idea that landed him in jail was to not buy IRPC’s at all, but to give people part of their own investments and call it a profit; hence “Ponzi Scheme”. Since the 1920’s there have been numerous “investment managers” who have committed the same con as Ponzi. When you break it down, it really is just handing money to someone you don’t know, in hopes that you will see a profit. You can ask the same question about why people gamble with the same answer to why people use the stock market: whether it be to supplement you’re income, to earn capital gains or for the mere feeling of excitement as if one was playing poker. So the idea that people find ways to con the system isn’t that far fetched (especially if there are examples of in my opinion of what’s borderline organized crime, (wall street) that gets away with what is so easily plain and simple: theft from the public.) But everything Wall Street does is completely legal. Their system is so manipulative and if you aren’t smart enough to understand their ways, and how to play their game you will get eaten alive. But, unlike the Ponzi scheme what Wall Street does is promise nothing. With millions of people that throw their money into the stock market there are just those “investment manager’s/advisor’s” who blatantly steal; promising that you will make ‘x’ amount of money when you never do (i.e. Ponzi, Madoff, Scafanie, and many more.) These men all have completely ripped people off and done so with out any kind of moral or ethical conscious. Bernie Madoff was a non-executive chairman of NASDAQ,...
Please join StudyMode to read the full document