TELEXFREE AND THE STORY AMERICAN ITALIAN CHARLES PONZI ======================================================= Well, borrow from A and enjoy the Money! Borrow from B and pay A and enjoy the Money. Borrow from C and pay B and enjoy the money until some X somewhere becomes wiser! The ‘smart’ borrower was Italian born American Charles Ponzi who played the Ponzi game that later came to be known as the Ponzi scheme. This started in America in 1920s. Now it is taking some vulnerable Ugandans by storm. Our struggles at The Agency for Transformation against unfettered Pension Liberalization are also informed by fears of Ponzi like investment bankers and hedge fund managers that will have access to savers/workers money and ponzilize it once the MPs pass the Pension Liberalization bill in current form. Ponzis original scheme was based on the arbitrage of international reply coupons for postage stamps; however, he soon diverted investors money to make payments to earlier investors and himself. What then is a Ponzi scheme? According to Wikipedia, A Ponzi scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned by the operator. Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the high returns requires an ever-increasing flow of money from new investors to sustain the scheme. I hope the Anti-Money laundering law will save Ugandans from the too good to be true schemes like Telex Free! Morrison Rwakakamba, CEO- Agency for Transformation mrwakakamba@gmail
Posted on: Wed, 14 May 2014 07:58:44 +0000
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