[bratticus]

U.S. halts two Ponzi schemes in wake of Madoff

By Rachelle Younglai
Reuters
Thu Jan 8, 2009

WASHINGTON (Reuters) - The U.S. government took action on Thursday to halt two Ponzi schemes as investors continue to reel from the fallout of accused swindler Bernard Madoff's alleged $50 billion fraud.

Securities and futures regulators charged a Philadelphia-area fund manager with operating a $50 million Ponzi fraud, in which he paid off early investors with money from later investors, officials said.

In a separate case, authorities charged an 82-year-old man with allegedly running a $17 million Ponzi scheme where he targeted the elderly and members of the Catholic community, including priests, religious orders and cemetery funds.

... snip ...

[UltraViciousBudgie]

While they're at it what about halting THE Ponzi scheme called Social Security.

[bratticus]

While they're at it what about halting THE Ponzi scheme called Social Security.

Evidence?

[UltraViciousBudgie]

Evidence?

Are you serious? It's self-evident. What do you call a scheme that doesn't invest in anything but instead relies on an ever-larger base of "investors" to pay off those who entered the scheme early on? Classic Ponzi. SS is worse than the Madoff Ponzi because unlike those greedy saps who voluntarily invested with Madoff we are forced to invest. Those working now pay a larger percentage of income into SS than past investors. Worst of all, those of us on the younger side will be forced by political reality to pay an increasingly greater percentage to keep the scheme going as long as possible (thanks AARP!), knowing full well that we will never see a cent of our money back.

I want off this shakedown ride!

Ida Mae Fuller, top of the SS Ponzi:

Social Security History

"Ida May Fuller worked for three years under the Social Security program. The accumulated taxes on her salary during those three years was a total of $24.75. Her initial monthly check was $22.54. During her lifetime she collected a total of $22,888.92 in Social Security benefits."

Just like the first Madoff investors, if you got in early it was the best thing since sliced bread. As long as there is an ever-increasing base of investors further down the pyramid all is well. However:

SS worker to retiree ratios

The ratio is currently 3.3 and Baby Boomers are now beginning to retire. Population demographics alone will collapse the SS Ponzi, never mind those minor details like the economic problem and peak oil.