Ponzi was a Bostonian fraudster who in 1920 guaranteed 50% profits in 45
days. Lots of people deposited money with him and after early success
progressively more and more people got sucked in. Of course all he was
doing was returning the deposits of the many later arrivals as the successful
and complete redemptions of the fewer earlier investors - a simple confidence
trick. Eventually the penny dropped - and all the later investors lost all
their money. Amazingly his system still gets used - as it did in 1997 in
Albania with the usual results. Welfare systems for the ageing populations of the western world are financed
by the same basic mechanism.