The scammer would go into business as some kind of financial expert. The financial field varies from scam to scam. The scammers goal is to get about 1000 people into his new great business. He really know how to pick 'em. Just give him your money and trust him (or her).
Well as you can see in the picture. You know where your money is going to go.
The scammer picks an investment not knowing whether it's going to be good or bad. He tells half the people it's a good investment. He tells the other half it's a bad investment. So he's going to be right for 50% of the people.
He drops the group of people that think he was wrong. Now he's down to 500 people. He does the same thing again with the smaller group. Now for 250 people he's been right twice in a row. The third time he's right for 125 people. The fourth time 62 people.
So now he's got this group of 62 people that think he's never been wrong. Now comes the sting. Hey he's got this sure thing investment. Give me all your money and we'll all be rich.
Guess what happens to all the money of 62 people. Poof! Gone!
So don't be sucked into a sure thing great deal by anyone. Remember Bernie Madoff.
That brings me to an interesting story from years ago. Remember 10,000 dollar bills?
No? Well I do. My dad worked at a bank. This was back in the late 60's. He called me up and said you have to come down to the bank and see something.
So I show up and he takes me to the vault. He takes two pieces of wood wrapped together with a rubber band out of a box. As he's taking the rubber band off he says, 'now don't touch this. It's somebody's birthday present.' And there was a brand new $10,000 bill. Serial number *00000250*. I'll remember that number forever.
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7 comments:
It'll bet it must be fun to try to get change with one of those!
I can't stop laughing from when I read 'remember $10,000 bills'
of course I do!!
I used to get them all the time when I worked the streets but that's a story for another time
This is basically the same scam that Vegas handicappers who run ads on radio and late night TV do. Call my 800 number and get the winner of Monday Night's NFL game FOR FREE.
Half the callers get one team to win, the other half get the other team. The half that win come back the next week and pay for picks.
I would like to have a $10,000 bill. That would be cool.
Jay
Ponzi's idea has been used over and over.
Heidi - I've got two $5000 bills for you. As soon as the ink drys.
Dianne - I thought this would be pocket change for you rich east coasters.
Jay - I print you one up tomorrow.
Elvis - Not quite a ponzi but pretty close.
I'm reminded of one of the recommendations for resolving the federal budget crisis ... the President calls the governor of West Virginia and asks if he (or she) has two tens for a five, then repeats as often as necessary.
Bilbo - Did it work?
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