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the the is offline
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Join Date: Oct 2006
Location: Colorado, USA
Posts: 8,279
It is a good question. IMO, the money isn't really gone, it is sitting hidden somewhere (either in money form, or invested in companies, real properties, etc.). His sons will pick it up after the dust settles.

In your example, there is no room holding the money, the 12% interest was always promptly paid out to the investors, usually on prorated monthly basis (i.e., 1% per month). That HAS to be done. A Ponzi scheme almost immediately comes apart the minute the interest payments aren't made to investors. People immediately freak out when the payments aren't made.

When the press is reporting $50 billion lost, my guess is that is "real" money, i.e., comprised mostly of the principal amount people invested in.
Old 12-24-2008, 12:53 PM
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