Bernard Madoff allegedly misled people into thinking they were going to earn money by investing in his hedge fund which turned out to be a Ponzi scheme. Larry Burkett, author of Crisis Control in the Millennium, said a Ponzi scheme “is a huge pyramid scheme in which the early participants are the winners and the latter are the losers.” People have been investing in this fund for the last 10 years.
The History of Deceptive DealingsThe Ponzi scheme is named after a man by the name of Charles Ponzi who bilked investors out of millions of dollars in the United States in the early 1900s using the same technique as Madoff. This concept was not new back then, but has been a common practice by unscrupulous individuals throughout history.
Naïve investors usually fall prey to these schemes because they do not understand the complex details of how the fund is intended to make money for the investor. They also rely on the word of the person who approached them about the scheme. However, greed seems to overtake the people involved and things do not work out as planned.
For example, in the 17th century, the people of Amsterdam invested their money in tulip bulbs because they were scarce at that time. For years, people made fortunes trading tulip bulbs which had become more valuable than real estate. Eventually, investors realized the risks involved and cashed out their holdings resulting in a collapse of the market. Many people lost money, lawsuits ensued, and people were thrown into jail.
The Bait
There is a common thread in each of these schemes and that is in people desiring wealth through get- rich-quick schemes, rather than hard work. But, many people do not realize that their talents can be turned into profitable businesses. For example, many people, including children, have turned their hobbies and talents into businesses.
Because of the economic crisis in the United States, many people are finding themselves out of jobs. There are many resources online which could help people transfer their skills into other jobs or businesses, as well as help others identify their skills. This may be a time to explore the many options and possibilities to use skills in ways not previously contemplated.
In conclusion, there are many opportunities to make money and the best way is through hard work while doing something you love.
