if it sounds too good to be true it probably is especially when it comes to
probably is especially when it comes to
probably is especially when it comes to money hi I’m Rebecca Brayton and welcome
money hi I’m Rebecca Brayton and welcome
money hi I’m Rebecca Brayton and welcome to watchmojo.com and today we’ll be
to watchmojo.com and today we’ll be
to watchmojo.com and today we’ll be learning more about Ponzi schemes and
learning more about Ponzi schemes and
learning more about Ponzi schemes and how to avoid them what is a Ponzi scheme
how to avoid them what is a Ponzi scheme
how to avoid them what is a Ponzi scheme how is it set up a Ponzi scheme is is
how is it set up a Ponzi scheme is is
how is it set up a Ponzi scheme is is basically one person benefiting from
basically one person benefiting from
basically one person benefiting from another person and as soon as the first
another person and as soon as the first
another person and as soon as the first investor comes in will only be able to
investor comes in will only be able to
investor comes in will only be able to reap a benefit because another investor
reap a benefit because another investor
reap a benefit because another investor comes in afterwards the next investor to
comes in afterwards the next investor to
comes in afterwards the next investor to invest their money pays for the first
invest their money pays for the first
invest their money pays for the first person that comes out it’s also known as
person that comes out it’s also known as
person that comes out it’s also known as AI pyramid scheme the first person at
AI pyramid scheme the first person at
AI pyramid scheme the first person at the top of the pyramid makes all the
the top of the pyramid makes all the
the top of the pyramid makes all the money that people at the bottom of the
money that people at the bottom of the
money that people at the bottom of the pyramid lose all their money is there
pyramid lose all their money is there
pyramid lose all their money is there ever a scenario where a Ponzi scheme
ever a scenario where a Ponzi scheme
ever a scenario where a Ponzi scheme might succeed or that it might be a good
might succeed or that it might be a good
might succeed or that it might be a good investment
investment
investment a Ponzi is a scam it’s a con the only
a Ponzi is a scam it’s a con the only
a Ponzi is a scam it’s a con the only way you can make money is if you’ve made
way you can make money is if you’ve made
way you can make money is if you’ve made it on the detriment of somebody else so
it on the detriment of somebody else so
it on the detriment of somebody else so I would basically say no you should try
I would basically say no you should try
I would basically say no you should try to avoid these at all costs no matter if
to avoid these at all costs no matter if
to avoid these at all costs no matter if you get in at the beginning or at the
you get in at the beginning or at the
you get in at the beginning or at the end what kind of terminology is
end what kind of terminology is
end what kind of terminology is important to keep in mind when
important to keep in mind when
important to keep in mind when discussing this kind of fraud if
discussing this kind of fraud if
discussing this kind of fraud if everybody knew it was a Ponzi scheme
everybody knew it was a Ponzi scheme
everybody knew it was a Ponzi scheme they wouldn’t be investing in the first
they wouldn’t be investing in the first
they wouldn’t be investing in the first place but terminology that you can
place but terminology that you can
place but terminology that you can listen to to find out if it will become
listen to to find out if it will become
listen to to find out if it will become or it is a Ponzi scheme is people
or it is a Ponzi scheme is people
or it is a Ponzi scheme is people guaranteeing something that doesn’t
guaranteeing something that doesn’t
guaranteeing something that doesn’t really make any sense something better
really make any sense something better
really make any sense something better than what makes sense if market rates
than what makes sense if market rates
than what makes sense if market rates are currently running three four percent
are currently running three four percent
are currently running three four percent somebody promises you 12 or 15 or more
somebody promises you 12 or 15 or more
somebody promises you 12 or 15 or more asking you to invest quickly asking you
asking you to invest quickly asking you
asking you to invest quickly asking you to put money in in an overseas account
to put money in in an overseas account
to put money in in an overseas account make checks payable to the wrong part
make checks payable to the wrong part
make checks payable to the wrong part anything that stands out from the normal
anything that stands out from the normal
anything that stands out from the normal you know day to day activity that you
you know day to day activity that you
you know day to day activity that you usually see often you ask ask yourself
usually see often you ask ask yourself
usually see often you ask ask yourself some extra questions and the more
some extra questions and the more
some extra questions and the more questions you ask sooner or later
questions you ask sooner or later
questions you ask sooner or later somebody’s gonna sound uncomfortable and
somebody’s gonna sound uncomfortable and
somebody’s gonna sound uncomfortable and you’re gonna sort of get the idea that
you’re gonna sort of get the idea that
you’re gonna sort of get the idea that something wrong is going on now in terms
something wrong is going on now in terms
something wrong is going on now in terms of the Bernie Madoff case which is
of the Bernie Madoff case which is
of the Bernie Madoff case which is obviously a recent example of a Ponzi
obviously a recent example of a Ponzi
obviously a recent example of a Ponzi scheme how was he able to get away with
scheme how was he able to get away with
scheme how was he able to get away with this for so long when things are going
this for so long when things are going
this for so long when things are going well when the markets are going up and
well when the markets are going up and
well when the markets are going up and so on and you say I’m going to get you a
so on and you say I’m going to get you a
so on and you say I’m going to get you a 10% rate of return it’s really easy to
10% rate of return it’s really easy to
10% rate of return it’s really easy to do when the markets are going up and the
do when the markets are going up and the
do when the markets are going up and the markets are going up and the markets are
markets are going up and the markets are
markets are going up and the markets are going up there’s more and more money
going up there’s more and more money
going up there’s more and more money coming in all the time
coming in all the time
coming in all the time these Ponzi schemes just get bigger and
these Ponzi schemes just get bigger and
these Ponzi schemes just get bigger and bigger and bigger and as soon as the
bigger and bigger and as soon as the
bigger and bigger and as soon as the market goes down
market goes down
market goes down and people started to take their money
and people started to take their money
and people started to take their money out and realize there’s no money left in
out and realize there’s no money left in
out and realize there’s no money left in the particular scheme the whole
the particular scheme the whole
the particular scheme the whole situation falls apart what can we learn
situation falls apart what can we learn
situation falls apart what can we learn from the Madoff case what signs might
from the Madoff case what signs might
from the Madoff case what signs might alert us to the fraud some of the
alert us to the fraud some of the
alert us to the fraud some of the wealthiest people in North America were
wealthiest people in North America were
wealthiest people in North America were invested in obviously overseas at the
invested in obviously overseas at the
invested in obviously overseas at the same time we’re invested with Bernie
same time we’re invested with Bernie
same time we’re invested with Bernie Madoff people came in and said you know
Madoff people came in and said you know
Madoff people came in and said you know how could it be wrong how could it be a
how could it be wrong how could it be a
how could it be wrong how could it be a fraud how could it be anything if these
fraud how could it be anything if these
fraud how could it be anything if these people are invested obviously there’s
people are invested obviously there’s
people are invested obviously there’s not any risk involved but it just proves
not any risk involved but it just proves
not any risk involved but it just proves every single time no matter how big or
every single time no matter how big or
every single time no matter how big or how small you are you have to ask the
how small you are you have to ask the
how small you are you have to ask the right questions and the right questions
right questions and the right questions
right questions and the right questions is you know actually safety how safe is
is you know actually safety how safe is
is you know actually safety how safe is my investment how can I get my capital
my investment how can I get my capital
my investment how can I get my capital out and so on there’s nothing wrong with
out and so on there’s nothing wrong with
out and so on there’s nothing wrong with asking questions some of the things that
asking questions some of the things that
asking questions some of the things that people get caught in is the terminology
people get caught in is the terminology
people get caught in is the terminology gets too complicated the terms all the
gets too complicated the terms all the
gets too complicated the terms all the the documentation the prospectus is the
the documentation the prospectus is the
the documentation the prospectus is the research and they say oh somebody must
research and they say oh somebody must
research and they say oh somebody must have looked into it thank you very much
have looked into it thank you very much
have looked into it thank you very much oh my pleasure anything
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