The Dirty Little Secret of Every Ponzi Scheme, or: Bernie Madoff’s 150 Year Sentence
…ff and Law stories has something to do with the confusion created by large numbers. The point is, in the financial sector, numbers need to correspond to some reality. Law’s paper notes were supposed to correspond to the gold held in his bank’s reserves. When the gap between numbers and real things grew too great, his system collapsed. It became, almost unwittingly, a nationwide French Ponzi scheme. Law was encouraged by the French regent to covert…
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