I’ve heard of Ponzi schemes before but never has one been talked about with so much interest as the Madoff scandal. The truth is, this Ponzi scheme probably would not have toppled at this time had the stock market not toppled even though Harry Markopolos provided evidence in 2000 of such a scheme.

A Ponzi scheme lures investors with promises of high returns ( if someone offers unbelievable returns or guarantees, beware).  But instead of investments, the big returns come from other peoples money. The company falsifies statements and pays out the returns by luring other victims into the web. Unfortunately, it must stop somewhere, and in this case it should have stopped in 2000, not eight years later. Maybe some of the investors could have been made partially whole. Maybe.

Anyway, my purpose in writing this blog was to highlight something I heard on Dr. Phil the other day. I had never thought about it before, but our Social Security system is one big Ponzi scheme. I’ve been told that I possibly might not be getting social security upon my retirement because the funds won’t be there even though I’ve paid into it for the last 20 years. Definitely a big Ponzi Scheme.