Breaking Through the Mist of Ponzi to Find the Dawn of Value, Part 1

“Under the mist of Ponzi is not only the misery and suffering but also the dawn of value…” The longest Ponzi scheme in history is Bernie Madoff’s hedge fund of funds, which lasted for more than 20 years. This kind of long-lasting scam generally does a good job in the following two areas: Customer Acquisition: keeps the constant flow of funds into a Ponzi scheme; Reduction of Outflows: minimizes the frequency and amount of investors’ withdrawal. Briefly speaking, they can be summarized as broadening the sources of income and reducing outflows. In fact, the above two features are not exclusive…...