Let’s give George Osborne’s ‘Help to Buy’ scheme another kicking: Think Left here takes the opportunity to analyse it, coming up with the inescapable conclusion that it’s a Ponzi scheme or – as readers may be more familiar with the idea – a pyramid scam.
Stacy Herbert spoke to Professor Steve Keen while he was in London. He officially declared George Osborne’s ‘Help to Buy’ scheme a PONZI, and one which should be more accurately named ‘Help to sell’!
Read more at http://www.maxkeiser.com/#2uVRUOUrrzeVurO2.99
Published on Jun 15, 2013
Definition of ‘Ponzi Scheme’
A fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns for older investors by acquiring new investors. This scam actually yields the promised returns to earlier investors, as long as there are more new investors. These schemes usually collapse on themselves when the new investments stop.
The Ponzi scam is named after Charles Ponzi, a clerk in Boston who first orchestrated such a scheme in 1919.
A Ponzi scheme is similar to a pyramid scheme in that both are based on using new investors’ funds to pay the earlier backers. One difference between the two schemes is that…
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