As a finance teacher, I can tell you that not only the Fed but any central bank is "technically" a ponzi scheme. Not only that. But the banking system and the monetary system they are the biggest player of, are much larger ponzi scheme too. If everybody tried to withdraw money from their bank at the same time there would be only a fraction of it... But the governments would be there to reassure depositors with their own ponzi scheme (public debt that will never be paid back, but rolled over and over...). And the central bank is there to help with its unlimited money creation (sometimes called money printing). But, contrary to the other ponzi schemes these are legal, and they work... and the worst that can happen is that either a sovereign default (more typical of emerging countries) or high inflation due to excessive money creation (typical of developed countries, but also some emerging countries)
It’s not a Ponzi scheme, Mr Finance Teacher. A Ponzi has a distinct definition, ColdFusion even states that in the beginning. A government issuing debt and creating money literally has nothing to do with a Ponzi scheme. You can like it or criticize it, but it’s not a Ponzi scheme.
@@tillitsdone I love looking back on the two times I actually got fired. Ok, 3 if you count the liquor store when I was 21. One of them kept changing customer orders for delivery at night that I had set up all day long per plan. Oh well, my fault I guess. The other company called me one month after canning me to tell me they didn't realize just how much work I did. But I already had another job. Oh yeah, the liquor store. I was drinking beer on the job with the rest of the crew. Guilty. However, I could have blown the whistle on the police officer that arrived at closing time to "keep us safe" at closing only to drink multiple shots of free liquor and drink beer and then drive drunk in his police cruiser home. I am so close to retirement that I relish my firings. Beautiful memories!!!!
My ex was constantly falling into these schemes and wasting so much time into “making moves”, embarrassing himself in front of his friends and family members, it was absolutely horrible . I feel sad still just remembering how completely sucked in he was into these types of “jobs”
@@coonjamalay Im gonna start the story by saying he NEVER made money, and was always in the red. He'd buy a sh*t ton of supplies (hoodies, Keto diet powders, programs, etc etc etc) he had to 'sign up at least 3 others' and his bosses were dudes that would rent luxury cars for their 'meet ups' in Chick-Fil-a parking lots to seem 'legit' and convincing. The guy was a total believer. Nothing wrong with that if its your own company, or a legit company, but these things were clearly scams.
@@ageorgiev89 Yeah... keyword 'SMART' and the reality is that most people are not , and those that are, prey on the financially illiterate and desperate people, usually giving their last money to try to get ahead. so its still 100% pathetic.
I've noticed, most of the time these schemes have some really charismatic personality leading the charge 😂😂😂. On the side note, I do think crypto have similar traits to Ponzi schemes. The bigger fool maybe? Idk it just feels like it.
@@ccateni28 He lost out big time. He believed in the scheme and thought it would make him rich, which is where his passion came from. Wikipedia states that he invested into it and lost all his money too.
One thing that saves me from falling into any funny scheme is that I always ask myself, if the return is so good, why don't they just invest their own money? Why look for investors? Even if these people only have a few thousand or just a hundred thousand, to begin with, they can double their money every few weeks or months and their fund will grow bigger. Why are they so kind to offer strangers like me the opportunity to get such a big return.
Bcoz they have limited amount of money ? Why do people need to finance to buy an asset ? Bcoz they dont have the money. Same here... not so hard to understand.
@@peace4045 if you don't have the money to do an investment then you shouldn't get a loan or use the money stored away because you should never invest or gamble what you cannot afford to lose.
@@toomanyaccounts R u for real ? U know what it means as entreprenuer, investor, etc... ? Dont read my statement as a standalone... it was a reply to a comment. 🤦🤦🤦
@@ICreatedU1 Not really, they ripped off their brand and stained it with the scam. If STC weren't preoccupied with being a charity, they probably would be suing the conspirators for defamation.
You missed to mention the lebanese government/banks ponzi where they promised depositors 15-20% returns in US dollars a currency they don’t control or can print. Eventually loans added up to more than 100 billion is US dollars and bank’s foreign currency was only 14 billion (alleged not confirmed) you should do a video about this topic!
Question: Do these scumbags get to keep their offshore money after being released from prison? Getting merely 11 years doesn't feel like justice to me, especially if there's an early release for good behavior.
they tend not to since any access of the offshore money means it can be grabbed. so it just sits there until a number of years pass then the bank claims it legally
Prosecutions for massive fraud always include huge restitution requirements that can't be forgiven by declaring bankruptcy. By the time a Ponzi scheme collapses most of these people are broke anyway, and any additional money they have gets paid to the government. If they were hiding money offshore and bring it back into the country the government will go after them for it.
Cold Fusion!!!!! Thank you so much. I've been working on a book about ponzi especially in Nigeria. I intend to be more vocal about it because a ponzi schemes will never ends.
@@OmarAlikaj I definitely will, I just want people to know how to identify them and also deal with their finances because as a developing country and a growing economy,we have a lot of people struggling to make ends meet and that increases the lust for glittering but empty opportunities that leaves many in a worse state. I want to begin a community that identifies likely ponzi schemes and expose them to the public before they are successful with their plans
@@OmarAlikaj I definitely will, I just want people to know how to identify them and also deal with their finances because as a developing country and a growing economy,we have a lot of people struggling to make ends meet and that increases the lust for glittering but empty opportunities that leaves many in a worse state. I want to begin a community that identifies likely ponzi schemes and expose them to the public before they are successful with their plans
24:49 Save the Children is a legitimate charity, Save the Kids is a scam. Even though in the video it can be obvious, it's a bad mistake to keep in the video all the same.
As long as greed exists, Ponzi Schemes will evolve to new ways! Thanks for this video. It proves not to follow the crowd blindly. People can be mislead easily.
what i learned from this, is that ponzi schemes are great if you manage to get in and out fast before they collapse. But the greed is what keeps the majority investors in, even if they smell something suspicious. Also, what if US dollar collapses due to the reason mentioned in the video. How does one walk with less damage from it? I live in EU. Would not having USD or stocks in American companies help?
I agree with you. The first move is to stay away from the dollar and US stocks. Additionally, I would put my money in properties and things that may go up in the value in the future (Assets). This is not financial advice, but as a fellow EU resident, I wanted to share my opinion. Peace.
You simply don't understand, do you. If the US dollar collapses, the whole world is, excuse my language, fukked. Remember the 2008 crisis? So at this point, if WE don't want that to happen, we need to keep investing in this wild, crazy and foolish dream named DOLLAR. I know it sounds crazy, but that's how the world works. Be safe.
It doesn't matter that YOU personally are not invested in the US because YOUR banks ARE invested. So if the US government defaults on its debt, the whole of the EU banking system will collapse with it.
@@alexandrupara4574 that's why many country are want to cutting reliancd on US dollar. Country like Indonesia are now trade directly from china without a US dollar
@@Mhdalzein we are toward the end of an asset bubble in the UK, EU and US, property prices could crash at any moment and likely will as there is a ceiling to rents and we are currently touching it... Property is categorically the wrong thing to buy currently, buying shares in utilities is a better bet, they are things the world can't do without and if they get nationalised, there's always a decent guaranteed minimum payout.....
The thing about the gold standard though is that it’s now impossible to follow. There simply hasn’t been enough gold mined in the history of humanity to back the current wealth of the global economy. Should we back the dollar with a physical commodity? Sure, I suppose. But gold? Nah. That ship left long ago.
the gold standard was one of history's most fantastic disasters: unbelievable and unnecessary misery was created via the gold standard and its elimination was the greatest and most beneficial achievements of the Roosevelt administration. Why anyone still believes it was good is utterly beyond me: it usually comes from a complete ignorance of financial history and the negative effects the gold standard has had ever since it was effectively adopted in America in 1873 (for context, immediately after being adopted it sparked one of the longest depressions in American history.......all unnecessary if we had not adopted the gold standard).
@@skullface1818 That's not the point. The US dollar is printed out of thin air to fund exorbitant budgets. It is essentially monopoly money. What's the first rule of monopoly? "The bank never goes broke, if it runs out of money it simply prints on any ordinary piece of paper"
@@Samuels-nz9em bingo! so funny that you mention Monopoly. True story, I don't even refer to currency as the dollar anymore; i call it Monopoly money because that's exactly what it is
If I had to picture from scratch with no previous knowledge of what someone who had the concept of a Ponzi scheme named after him, I would picture an exact replica of Charles Ponzi with that hat and smug look on his face
This happened in Ghana from 2017 - 2018/19. A company called Menzgold claimed they were investing in gold & promised 10% monthly returns to investors. They bought the gold initially but stopped and started paying new investor money to old investors. It's probably one of the biggest ponzi schemes to ever happen in Ghana. People lost huge sums of money. The crazy thing is, the owner didn't face any jail time.
@@nii_amart Too bad. Funny, in Ghana I see more church-going, bible-clutching Christians than any other country I ever been, yey nobody trust anybody, because there's so much banditry, scheming, corruption, and thievery there. African people need to return to traditional ways.
Prosecutor: “Bitconnect is one of the worst Ponzi schemes ever, and the largest cryptocurrency fraud ever charged!” Sam Bankman-Fried and FTX: “Allow us to introduce ourselves…”
@@1337Horde FTX is literally so bad that they had to get the guy who handled the Enron bankruptcy to liquidate it, and he said not even Enron was that bad
24:50 Dagogo, no! No no no *_no_* ! Save the Children is a legitimate organization. The scam was Save the *_Kids_* . They are similar because the scammers were specifically trying to ride on Save the Children's reputation. Come on, you even put the actual title of the scam on the screen.
Dagogo evolves more and more to a real financial expert. It's really cool that he is willing to share his knowledge and research with the community. Cheers Dagogo
While watching your video about Ponzi schemes, I get an ad for investing in the Metaverse, an obvious scam of the 2020’s. An ad that was played to me twice during the video. Scary algorithm.
Loved that you gave Coffeezilla a shout out, his videos are really well researched, just like yours, even though he is operating in a totally different area👍🏼
Others and I have pointed out some glaring research flaws in some of Dagogo’s work; not in line with his production quality. The production quality, aesthetics liberties, and his smooth narration/voice are the main selling points of his content and what keep me coming back & wanting to stay subbed.
Buying a company just to fire your old boss.... reminds of something Julius Caesar did. He was taken prisoner by pirates and held for ransom. After it was paid, Caesar raised a fleet and ended up carpeting the pirates. They were then crucified.
The Ponzi story is one of the most interesting stories in 1920s ish history. Like the whole thing sounds like it came from a movie or a novel except it really happened.
It was like millions of millions of dollars too. Like how much would that be worth today? It’s crazy to think how “rich” he was for his time period too!
Well, that's how retirement system works :D at least in Poland. The only reason old people get their money each month is because working people are constantly paying obligatory money for "their own" retirement in the future. :D
I guess the (slight) difference is two-fold: 1) it’s obligatory, which means people can’t simply back out of it if they are making income. 2) the failure of a Ponzi scheme occurs when there are no more new investors to pay previous investors. In a country, as long as you keep having new citizens being born/immigrating and entering the workforce, you are *somewhat* sheltered from this risk. This is one of the larger reasons why first world countries are beginning to become more and more concerned about declining birth rates, as well as the upswell in costs due to the sheer size of the baby boomer generation. I’m a millennial living in the US, and I’m almost certain that I’m paying into a social security system that will not be providing for me when I reach retirement age. So yeah, there are differences, but I guess it’s probably a Ponzi scheme in the end lol
I’m confused, so can someone explain it to me? He bought the home for $7M or it is now worth $7M? Not to discredit your research, but I can’t find that info at all
Reading about people grabbing multi-figures monthly as income in investments even in this crazy days in the market,any pointers on how to make substantial progress in earnings?would be appreciated...
@Michael, You make it seem unreal to make up to that as a passive income annually,when it’s clearly possible. I have made over 1Hunnid thousand dollars from January till now with no joke game plan. She’s a masterpiece and her name is Christiana.😁
Thanks for that video. I’ve seen one in action and couldn’t believe how many fell for it and even got grumpy with me not wanting to buy into it. Your video should be mandatory for year 8 in school.
It's not always people from a weak financial background that fall for Ponzi schemes. People that invested with Bernie Madoff were well versed in economics / investing and they got scammed for decades.
the interesting thing about the original Ponzi scheme is that Ponzi was doing exactly the kind of calculation that SVB, for instance, was doing. As long as not everyone asked for their money back at the same time he would be fine and they would be fine too.
The coupons were always the key- there couldn’t be enough of them for it to even be true. It’s always basic math anyone can do that takes down schemes. Even for guys like Bankman Fried from FTX.
There is something positive to learn from Charles Ponzi! Btw, you have lots of money that is why your banks offer 2% on deposits. In my country, banks offer even 10% p.a because there are few depositors.
These vids always blow my damn mind, iv always wanted to know how exactly a Ponzi Scheme worked and man.....Charles was nearly an absolute genius for this!
I watch every episode of American Greed and it blows my mind people fall for this stuff. If someone can give you a 15% a month return on your money, they wouldn't need to raise cash from individuals off the street. A bank would lend the money in a second.
@@vinyllpreviews9462 Over the years I’ve learnt with all these scams, there are always red flags early on that should raise suspicion, but even those that do suspect something might be up, still go with it anyway.
Correction on Allen Stanford: He actually got 110 years in prison, not 11 years. After stealing 7 billion dollars, he deserved to spend the rest of his life in prison.
Hey Cold Fusion, I like your videos! Something to add to the discussion about the US Fed: the trade deficit, which you alluded to, is many decades old. It's not just goods and services that the US trades for foreign capital -- it's also investment in business and real estate. It's true that the US govt pays investors out of the pockets of other investors. But it also pays out of tax revenues. And as you noted it also pays from the bank accounts of savers by inflating away the value of the savings. Ponzi scheme? Sure! But it's also a shell game.
A lot of the U.S. Deficit just like most other nation's debt is not borrowed from outside investors, but borrowed from within the nation's existing assets, making the nation it's own lender and debt holder. It's basically an inverse bubble that grow the more you borrow from it, and shrink when the debt is decreased. That said, the world economy is held up by debt.
I strongly disagree the US Federal Reserve is a Ponzi scheme. The loans handed out by the Fed, or any Central Bank, is backed by real value, namely the production and exports of the country in question. Ponzi schemes are backed by nothing of value at all. It's true Central Banks don't have all the cash readily available, but I challenge you to name any bank that can pay back everyone at once. Or any company that can pay back all their debts at once for that matter.
It is not even true. If hopes and dreams, and sometimes peace of mind (I'm with the stupid and so is my money) are of any value, then most Ponzi schemes are backed by something of value.
I commend you on not just outstanding presentations but as you did at the end of this episode, provide meaningful and useful advice to people so that they (if they're listening and take your advice seriously) won't end up shelling out THEIR hard-earned dollars to those who have their sights on easy-rich dollars. I see all the time on TH-cam flashy presenters of these "get rich quick" schemes and you have to ask yourself -- has the human race sunk to such low levels that the only life value some have is prefixed by a dollar sign! Most likely, those people aren't going to be watching your videos anyway, so if they ever possessed an ethical bone in their body, that has over their life fractured so much that it is now dust.
The Franklin Syndicate, which ripped off millions from people around the United States with a promise of 520 percent increase per annum at the end of the 19th century, never gets any love in stories like this. The best part of the Franklin Syndicate is that two of the three principals got away with the cash and lived happily ever after, disproving the adage that crime does not pay.
40% a month lol do people not know how to use a compound interest calculator?? Just $1 dollar at 40% monthly will turn into $1.9 TRILLION in 7 years smh if it's too good to be true, it probably is.
If you had a business idea that could generate that kind of money, you wouldn't need investors off the streets. People with money Only be linning up around the corner to invest.
One thing that always surprizes me is how none of those guys had an escape plan. With the billions they had at their disposal, they could have bought themselves a very nice piece of paradise in a place without extradition treaties (or even actively hostile) to USA. They most likely would never be able to travel to another country again but I think it is a small price to pay. Of course some sort of black operation could extract them but create an international incident specially if the guy is well protected and not something like a terrorist would be very complicated and maybe even impossible depending on where they go.
The problem with "the Fed is a Ponzi scheme" is that the returns on gov't bonds is absurdly low at 2-3% (inflation is usually 2%, so the Fed is only promising 0-1% return). Stocks have 10x returns, so even if it is a scheme, it's not a attractive one.
@@alxfonso4924 Bonds are backed by the US gov't. The gov't and its revenue is much more concrete and stable than the value of commodities like gold, oil, etc which fluctuates wildly (e.g., negative oil prices).
Something I think it would be interesting to see you cover is the 2006-2012 new zealand finance company collapse. Mismanagement and outright fraud cost nearly 3 billion dollars. My grandparents were caught up in it to the tune of almost a million. They did everything right. Spoke to a financial planner, diversified their portfolio by both investing in a different company...but the financial advisor they spoke to was being given incentives to look the other way and not reveal the companies were almost in receivership...
It is impossible for everyone to withdraw their funds from the bank at once, no matter what the anarchist say. Having an educated debate will be nice, but judging from your question, I am sure that you are definitely not educated in banking and financial institution. Spend more time reading books and less time browsing shitposts.
![How to Lie Your Way to $34 Billion [Nikola Motors Fraud]](http://i.ytimg.com/vi/88fWUZhYb04/mqdefault.jpg)
![How to Lie Your Way to $34 Billion [Nikola Motors Fraud]](/img/tr.png)
As a finance teacher, I can tell you that not only the Fed but any central bank is "technically" a ponzi scheme. Not only that. But the banking system and the monetary system they are the biggest player of, are much larger ponzi scheme too. If everybody tried to withdraw money from their bank at the same time there would be only a fraction of it... But the governments would be there to reassure depositors with their own ponzi scheme (public debt that will never be paid back, but rolled over and over...). And the central bank is there to help with its unlimited money creation (sometimes called money printing). But, contrary to the other ponzi schemes these are legal, and they work... and the worst that can happen is that either a sovereign default (more typical of emerging countries) or high inflation due to excessive money creation (typical of developed countries, but also some emerging countries)
Well, the worst that can happen short of large scale collapse of the entire economic system
A ponzi scheme as an end, if it's not ending it's a fiat currency.
Bank run.
It’s not a Ponzi scheme, Mr Finance Teacher. A Ponzi has a distinct definition, ColdFusion even states that in the beginning. A government issuing debt and creating money literally has nothing to do with a Ponzi scheme. You can like it or criticize it, but it’s not a Ponzi scheme.
@@Big_Tex you clearly didn't watch to the end. The federal reserve is listed as the greatest ponzi scheme in close to the end of the video
I know it was wrong, but buying out the company you got fired from, just to fire the guy that fired you, is a hilarious power move lol.
How many of us would love to do the same? i was never outright fired, but worked for some true jerks
Not gonna lie, I support that power move, if only because of the dedication put into it.
@@tillitsdone I love looking back on the two times I actually got fired. Ok, 3 if you count the liquor store when I was 21. One of them kept changing customer orders for delivery at night that I had set up all day long per plan. Oh well, my fault I guess. The other company called me one month after canning me to tell me they didn't realize just how much work I did. But I already had another job. Oh yeah, the liquor store. I was drinking beer on the job with the rest of the crew. Guilty. However, I could have blown the whistle on the police officer that arrived at closing time to "keep us safe" at closing only to drink multiple shots of free liquor and drink beer and then drive drunk in his police cruiser home.
I am so close to retirement that I relish my firings. Beautiful memories!!!!
Straight BOSS move!!
Asserting dominance
The fact he even got the cops to invest is hilarious
Ahoy
hahaaa dumb
Actually it was irony
Cops too need money.
This comment is an Easter egg in and of itself
My ex was constantly falling into these schemes and wasting so much time into “making moves”, embarrassing himself in front of his friends and family members, it was absolutely horrible . I feel sad still just remembering how completely sucked in he was into these types of “jobs”
Give me an example please 😂
Did we date the same dude?! Lol. Always "making moves" with absolute nonsense. Smh. I'm still cringing.
@@ElmerGLue damnn
@@coonjamalay Im gonna start the story by saying he NEVER made money, and was always in the red. He'd buy a sh*t ton of supplies (hoodies, Keto diet powders, programs, etc etc etc) he had to 'sign up at least 3 others' and his bosses were dudes that would rent luxury cars for their 'meet ups' in Chick-Fil-a parking lots to seem 'legit' and convincing. The guy was a total believer. Nothing wrong with that if its your own company, or a legit company, but these things were clearly scams.
@@ageorgiev89 Yeah... keyword 'SMART' and the reality is that most people are not , and those that are, prey on the financially illiterate and desperate people, usually giving their last money to try to get ahead. so its still 100% pathetic.
"The Largest Ponzi Schemes in History"
2022 FTX: Hold my FTT...
Greed is one of the biggest dangers
A mere 3 billion.. How large is that?
@@Originalimocpretty sure it was over 10 billion actually
FTT wasn't ponzi. It was misappropriation of funds
Elon musk: hold my Ketamin
"He even bought the shipping company he worked for just to fire his boss" lmao
Give a man a gun he can rob a bank, give a man a bank he can rob the world
🥂🥂
@@mistaowickkuh6249 Give a man a solar system, he can rob the galaxy.
You didnt understand the video
Give the man a world?
Give the man a world?
Bit-co-NEEEEEEEEEEEEEEEEEEEEEEEECT
WHOOOOOOOO!!!! 😂😂😂
I've noticed, most of the time these schemes have some really charismatic personality leading the charge 😂😂😂.
On the side note, I do think crypto have similar traits to Ponzi schemes. The bigger fool maybe? Idk it just feels like it.
Hey hey heeyy hey hey HeeeEey
BIT-CON-EEEEEEEEEEEEEEECT
I love that meme
What ever happened to that guy?
I hope he still enjoys success from the memes.
Note how he poorly attempts to copy rap stars of the 90s
@@ccateni28 He lost out big time. He believed in the scheme and thought it would make him rich, which is where his passion came from. Wikipedia states that he invested into it and lost all his money too.
One thing that saves me from falling into any funny scheme is that I always ask myself, if the return is so good, why don't they just invest their own money? Why look for investors? Even if these people only have a few thousand or just a hundred thousand, to begin with, they can double their money every few weeks or months and their fund will grow bigger. Why are they so kind to offer strangers like me the opportunity to get such a big return.
yeah anyone that figured out a way to get 20% or more returns wouldn't tell anyone else
Exactly. 👍
Bcoz they have limited amount of money ? Why do people need to finance to buy an asset ? Bcoz they dont have the money. Same here... not so hard to understand.
@@peace4045 if you don't have the money to do an investment then you shouldn't get a loan or use the money stored away because you should never invest or gamble what you cannot afford to lose.
@@toomanyaccounts R u for real ? U know what it means as entreprenuer, investor, etc... ?
Dont read my statement as a standalone... it was a reply to a comment. 🤦🤦🤦
The moment someone screamed the name of their company at the top of their lungs inches from a microphone I'd know it was fake.
24:58 it was "save the kids" coin, save the children is an actual charity.
Good catch
LOL, I'm sure Save the Children is happy about the free publicity!
@@ICreatedU1 Not really, they ripped off their brand and stained it with the scam. If STC weren't preoccupied with being a charity, they probably would be suing the conspirators for defamation.
@@amirpourghoureiyan1637 Oh, really, you think they weren't happy about the free publicity? Why not?? ;)
@@ICreatedU1 Free Infamy*** Do you think a charitable organization wants to be tied to big money scamming?
As a lebanese myself, I can say with full and utter confidence what is a ponzi scheme. All of us are currently living in the aftermath of one.
L lira b alf kheir
The dream is over everywhere
@@ktans6264 ba3ed 3ana karameh. Basita wlo
Be strong, that's the only thing you all can do.
I feel like my country is gonna burst any moment now.
Ponzi scheme? Bi Lebnen??? lah wlo
You missed to mention the lebanese government/banks ponzi where they promised depositors 15-20% returns in US dollars a currency they don’t control or can print. Eventually loans added up to more than 100 billion is US dollars and bank’s foreign currency was only 14 billion (alleged not confirmed) you should do a video about this topic!
This
lebeneezer
The entire UK's pension system is a Ponzi scheme. They don't even try to hide it.
Damn I never heard anything about this.
@@gussampson5029 Me either
I've known about this story a while ago. But I am tuning into this channel to watch it again because Coldfusion puts content together so well 💯
Question: Do these scumbags get to keep their offshore money after being released from prison? Getting merely 11 years doesn't feel like justice to me, especially if there's an early release for good behavior.
they tend not to since any access of the offshore money means it can be grabbed. so it just sits there until a number of years pass then the bank claims it legally
he actually got 110 years
@@Kylec3 I was talking about R. Allen Stanford (17:38)
Good behavior : I didn’t scam the guards or fellow prisoners whilst in jail ; I even gave them an unofficial pay increase!
Prosecutions for massive fraud always include huge restitution requirements that can't be forgiven by declaring bankruptcy. By the time a Ponzi scheme collapses most of these people are broke anyway, and any additional money they have gets paid to the government. If they were hiding money offshore and bring it back into the country the government will go after them for it.
Cold Fusion!!!!! Thank you so much.
I've been working on a book about ponzi especially in Nigeria. I intend to be more vocal about it because a ponzi schemes will never ends.
Nigeria? That's Dagogo's home country, and mine. Whatever that work is, maybe let us know what you conclude on the subject.
@@OmarAlikaj I definitely will, I just want people to know how to identify them and also deal with their finances because as a developing country and a growing economy,we have a lot of people struggling to make ends meet and that increases the lust for glittering but empty opportunities that leaves many in a worse state. I want to begin a community that identifies likely ponzi schemes and expose them to the public before they are successful with their plans
@@OmarAlikaj I definitely will, I just want people to know how to identify them and also deal with their finances because as a developing country and a growing economy,we have a lot of people struggling to make ends meet and that increases the lust for glittering but empty opportunities that leaves many in a worse state. I want to begin a community that identifies likely ponzi schemes and expose them to the public before they are successful with their plans
MM right?
Is this the one where the Nigerian prince needs help from you to recover his fortune ? 😁
Dagogo has me hooked on all his videos, no matter the subject I end up watching to the end.
Why did u say so ?
who is dagogo
@@comicsandanimation5531 Dagogo Altraide is the voice and producer of these videos.
Why don’t you just say Coldfusion lmao who gives a shit who produced the video the channel is called Coldfusion
@@JohnFKennedy420 stfu john
24:49 Save the Children is a legitimate charity, Save the Kids is a scam. Even though in the video it can be obvious, it's a bad mistake to keep in the video all the same.
Probably the clearest example of defamation we've had in recent times.
That Bitconnect stage ‘Bitconeeeeeect’ made me laugh so hard 😂😂😂
As long as greed exists, Ponzi Schemes will evolve to new ways!
Thanks for this video. It proves not to follow the crowd blindly. People can be mislead easily.
what i learned from this, is that ponzi schemes are great if you manage to get in and out fast before they collapse. But the greed is what keeps the majority investors in, even if they smell something suspicious.
Also, what if US dollar collapses due to the reason mentioned in the video. How does one walk with less damage from it? I live in EU. Would not having USD or stocks in American companies help?
I agree with you. The first move is to stay away from the dollar and US stocks. Additionally, I would put my money in properties and things that may go up in the value in the future (Assets). This is not financial advice, but as a fellow EU resident, I wanted to share my opinion.
Peace.
You simply don't understand, do you. If the US dollar collapses, the whole world is, excuse my language, fukked. Remember the 2008 crisis? So at this point, if WE don't want that to happen, we need to keep investing in this wild, crazy and foolish dream named DOLLAR. I know it sounds crazy, but that's how the world works. Be safe.
It doesn't matter that YOU personally are not invested in the US because YOUR banks ARE invested. So if the US government defaults on its debt, the whole of the EU banking system will collapse with it.
@@alexandrupara4574 that's why many country are want to cutting reliancd on US dollar.
Country like Indonesia are now trade directly from china without a US dollar
@@Mhdalzein we are toward the end of an asset bubble in the UK, EU and US, property prices could crash at any moment and likely will as there is a ceiling to rents and we are currently touching it... Property is categorically the wrong thing to buy currently, buying shares in utilities is a better bet, they are things the world can't do without and if they get nationalised, there's always a decent guaranteed minimum payout.....
the history of removing the dollar from gold is maddening
The thing about the gold standard though is that it’s now impossible to follow. There simply hasn’t been enough gold mined in the history of humanity to back the current wealth of the global economy. Should we back the dollar with a physical commodity? Sure, I suppose. But gold? Nah. That ship left long ago.
the gold standard was one of history's most fantastic disasters: unbelievable and unnecessary misery was created via the gold standard and its elimination was the greatest and most beneficial achievements of the Roosevelt administration.
Why anyone still believes it was good is utterly beyond me: it usually comes from a complete ignorance of financial history and the negative effects the gold standard has had ever since it was effectively adopted in America in 1873 (for context, immediately after being adopted it sparked one of the longest depressions in American history.......all unnecessary if we had not adopted the gold standard).
@@skullface1818 That's not the point. The US dollar is printed out of thin air to fund exorbitant budgets. It is essentially monopoly money. What's the first rule of monopoly? "The bank never goes broke, if it runs out of money it simply prints on any ordinary piece of paper"
@@Samuels-nz9em bingo! so funny that you mention Monopoly. True story, I don't even refer to currency as the dollar anymore; i call it Monopoly money because that's exactly what it is
If I had to picture from scratch with no previous knowledge of what someone who had the concept of a Ponzi scheme named after him, I would picture an exact replica of Charles Ponzi with that hat and smug look on his face
This happened in Ghana from 2017 - 2018/19. A company called Menzgold claimed they were investing in gold & promised 10% monthly returns to investors. They bought the gold initially but stopped and started paying new investor money to old investors. It's probably one of the biggest ponzi schemes to ever happen in Ghana. People lost huge sums of money. The crazy thing is, the owner didn't face any jail time.
Africa is a paradise for schemers...
Was the top schemer a Ghanaian or a foreigner?
@@YaoEspirito Ghanaian
@@nii_amart
Too bad. Funny, in Ghana I see more church-going, bible-clutching Christians than any other country I ever been, yey nobody trust anybody, because there's so much banditry, scheming, corruption, and thievery there.
African people need to return to traditional ways.
@@YaoEspirito that's actually pretty spot on. The country is in a mess.
Imagine stealing from a church so much that your family deports you.
always look forward to these
Me too.
Ponzi schemes? Weird.
Same here. Excellent quality and informative
It's the studious voice for me. 🤷🏽♂️🗣
Always.
Me: Pfff, I'd never fall for THAT crap
*Also me: all in on Shibu Inu*
Did someone promise you guaranteed returns on that though?
@@lufazim Yes, a talking Shibu did.
@@gibran6190 😂
Well, how's that going for you?
@@ctdieselnut Dump it!
Ponzi schemes is such a huge issue Nigeria. Nearly 20 have crashed this year alone, taking billions with them
Are you a Nigerian prince?
The best ponzi schemes are those who have never been caught.
Prosecutor: “Bitconnect is one of the worst Ponzi schemes ever, and the largest cryptocurrency fraud ever charged!”
Sam Bankman-Fried and FTX: “Allow us to introduce ourselves…”
Spot on
@@1337Horde FTX is literally so bad that they had to get the guy who handled the Enron bankruptcy to liquidate it, and he said not even Enron was that bad
24:50
Dagogo, no! No no no *_no_* !
Save the Children is a legitimate organization. The scam was Save the *_Kids_* . They are similar because the scammers were specifically trying to ride on Save the Children's reputation.
Come on, you even put the actual title of the scam on the screen.
Ponzi scams can be very profitable if you are in the first wave of investors but you should know when to get out of the house
you will never be in the first wave of investors. If you think you are you've been duped
Dagogo evolves more and more to a real financial expert.
It's really cool that he is willing to share his knowledge and research with the community.
Cheers Dagogo
While watching your video about Ponzi schemes, I get an ad for investing in the Metaverse, an obvious scam of the 2020’s. An ad that was played to me twice during the video. Scary algorithm.
That Ponzi fella was a piece of work
Loved that you gave Coffeezilla a shout out, his videos are really well researched, just like yours, even though he is operating in a totally different area👍🏼
Meanwhile Muta isn't even mentioned lol
Others and I have pointed out some glaring research flaws in some of Dagogo’s work; not in line with his production quality. The production quality, aesthetics liberties, and his smooth narration/voice are the main selling points of his content and what keep me coming back & wanting to stay subbed.
One of the very, very, VERY few crypto guys worth listening to
@@Bludgeoned2DEATH2 It's annoying but if I had to pick from the two, I think Coffee needs the shoutout more
Buying a company just to fire your old boss.... reminds of something Julius Caesar did.
He was taken prisoner by pirates and held for ransom. After it was paid, Caesar raised a fleet and ended up carpeting the pirates. They were then crucified.
The Ponzi story is one of the most interesting stories in 1920s ish history. Like the whole thing sounds like it came from a movie or a novel except it really happened.
It was like millions of millions of dollars too. Like how much would that be worth today? It’s crazy to think how “rich” he was for his time period too!
Well, that's how retirement system works :D at least in Poland. The only reason old people get their money each month is because working people are constantly paying obligatory money for "their own" retirement in the future. :D
That's how American Social Security works
Also how American suburb infrastructure works too.
Retirement system? Giant scam indeed.
That's how it works everywhere
I guess the (slight) difference is two-fold: 1) it’s obligatory, which means people can’t simply back out of it if they are making income. 2) the failure of a Ponzi scheme occurs when there are no more new investors to pay previous investors. In a country, as long as you keep having new citizens being born/immigrating and entering the workforce, you are *somewhat* sheltered from this risk. This is one of the larger reasons why first world countries are beginning to become more and more concerned about declining birth rates, as well as the upswell in costs due to the sheer size of the baby boomer generation. I’m a millennial living in the US, and I’m almost certain that I’m paying into a social security system that will not be providing for me when I reach retirement age. So yeah, there are differences, but I guess it’s probably a Ponzi scheme in the end lol
When they don’t want you to ask questions, that’s a red flag right there!
In 2022, SBF said hold my beer.
Someone's gotta make a movie of charles ponzi man. His life story sounds perfect for it.
"I promised 5 schemes, but here's one more - The U.S. Federal Reserve System..."
Dagogo, you my friend are beautifully based haha
I’m confused, so can someone explain it to me? He bought the home for $7M or it is now worth $7M? Not to discredit your research, but I can’t find that info at all
Perfectly presented
Why do you love black men so much
He had the nerve to ask a judge for a compassionate release.
21:08 Allen Stanford "was sentenced to 11 years in prison". WHAT??? *Wrong. He is serving a 110 year prison sentence!*
Thanks for clearing that up. I was wondering why did he only get 11 years
Rothstein actually fled because of a murder charge. I believe it was his second in command he had murdered.
Reading about people grabbing multi-figures monthly as income in investments even in this crazy days in the market,any pointers on how to make substantial progress in earnings?would be appreciated...
You have to have an idea on what you wanna invest in carefully before going in.
@Michael, You make it seem unreal to make up to that as a passive income annually,when it’s clearly possible. I have made over 1Hunnid thousand dollars from January till now with no joke game plan. She’s a masterpiece and her name is Christiana.😁
Kindly reach her thru Tele gram page with
Christianarobert is the name
This lady right here,I tradr with her she’s inventive and the P.O.T are no jokes, I won’t look awestricken u made mention of her,
Thanks for that video. I’ve seen one in action and couldn’t believe how many fell for it and even got grumpy with me not wanting to buy into it. Your video should be mandatory for year 8 in school.
It's not always people from a weak financial background that fall for Ponzi schemes. People that invested with Bernie Madoff were well versed in economics / investing and they got scammed for decades.
I am not sure they should keep their credentials.
the interesting thing about the original Ponzi scheme is that Ponzi was doing exactly the kind of calculation that SVB, for instance, was doing. As long as not everyone asked for their money back at the same time he would be fine and they would be fine too.
The coupons were always the key- there couldn’t be enough of them for it to even be true. It’s always basic math anyone can do that takes down schemes. Even for guys like Bankman Fried from FTX.
Amazing video.
Really shows us to just work genuinely and help people.
Well, all the other Ponzi schemers did not have the most powerful navy and army in the world!
They also don't have a dollar printer like the USA. All oil in the world is traded with the US dollar.
FTX: hold my beer
Quick correction for this video: Getting rich doesn't necessarily mean you need to work hard. It does mean you need to work smart though.
But what really is working smart though? At the end of the day you are only as smart as you can be so it still comes down to hardwork.
Working smart it's the hard part, there's way more people who can work hard than people who can work smart, hence the hard part is working smart.
Could you do a video on turning commodity from a physical thing into an abstract idea that contains value?
Marx's Capital is the place to start for that
The placement of an eToro ad right in a key moment was flawless.
I'd argue the FTX scam would fit right in here.
Biggest Ponzi Scheme in history...
FTX: Hold my beer
There is something positive to learn from Charles Ponzi!
Btw, you have lots of money that is why your banks offer 2% on deposits. In my country, banks offer even 10% p.a because there are few depositors.
These vids always blow my damn mind, iv always wanted to know how exactly a Ponzi Scheme worked and man.....Charles was nearly an absolute genius for this!
Not genius, brave mabey. Charles was to genius as your name is to feminism.
I watch every episode of American Greed and it blows my mind people fall for this stuff.
If someone can give you a 15% a month return on your money, they wouldn't need to raise cash from individuals off the street. A bank would lend the money in a second.
@@vinyllpreviews9462 Over the years I’ve learnt with all these scams, there are always red flags early on that should raise suspicion, but even those that do suspect something might be up, still go with it anyway.
Ponzi was not a genius. He kept getting caught. His postal coupon scheme only lasted for months. Madoff's lasted 15 years.
Madoff asked me for money. I told him, "Dude, I only make 25,000 US annually." And then left me alone. I guess I wasn't his target audience. 🤷
Correction on Allen Stanford: He actually got 110 years in prison, not 11 years. After stealing 7 billion dollars, he deserved to spend the rest of his life in prison.
You'll need to change the title of this after FTX.
Hey Cold Fusion, I like your videos! Something to add to the discussion about the US Fed: the trade deficit, which you alluded to, is many decades old. It's not just goods and services that the US trades for foreign capital -- it's also investment in business and real estate. It's true that the US govt pays investors out of the pockets of other investors. But it also pays out of tax revenues. And as you noted it also pays from the bank accounts of savers by inflating away the value of the savings. Ponzi scheme? Sure! But it's also a shell game.
I actually get excited when a new video is posted 😂
Thankyou ColdFusion for constantly bringing good journalism and helping us learn something new and build more perspective every time!! thankyou.
A lot of the U.S. Deficit just like most other nation's debt is not borrowed from outside investors, but borrowed from within the nation's existing assets, making the nation it's own lender and debt holder. It's basically an inverse bubble that grow the more you borrow from it, and shrink when the debt is decreased. That said, the world economy is held up by debt.
I grew up in Antigua, the Antiguan government praised the crook. It divided the island. My dad knew he was a crook from the start.
"Government was the real Ponzi Scheme?" ***Hammer of the gun pulled back ***
"It always was, Chuck."
Probably the best video on schemes, sponsored by RayCon....the irony.
Why? Is the product a con?
I strongly disagree the US Federal Reserve is a Ponzi scheme. The loans handed out by the Fed, or any Central Bank, is backed by real value, namely the production and exports of the country in question. Ponzi schemes are backed by nothing of value at all. It's true Central Banks don't have all the cash readily available, but I challenge you to name any bank that can pay back everyone at once. Or any company that can pay back all their debts at once for that matter.
It is not even true. If hopes and dreams, and sometimes peace of mind (I'm with the stupid and so is my money) are of any value, then most Ponzi schemes are backed by something of value.
Because only Bankers are allowed to rip you off. They don't like competition.
Crazy that shortly after this video, FTX would collapse and would’ve made this list
You could run a Ponzi yourself. You are such a smooth talker. Great video
This ponzi is nothing compare to 20s in 2000, Chamath's SPACs, Sam Bankman-fried's tulip dreams etc.
A shoutout to Coffeezilla and calling the Fed what it really is? I love it.
You're channel is the best
"Sponsored by raycon"
Well, I guess everyone has a price.
More info? I didn’t know Raycon was a problem.
@@DanielPolanco in some video (can't find it anymore) he had different opinions about raycon.
I commend you on not just outstanding presentations but as you did at the end of this episode, provide meaningful and useful advice to people so that they (if they're listening and take your advice seriously) won't end up shelling out THEIR hard-earned dollars to those who have their sights on easy-rich dollars.
I see all the time on TH-cam flashy presenters of these "get rich quick" schemes and you have to ask yourself -- has the human race sunk to such low levels that the only life value some have is prefixed by a dollar sign! Most likely, those people aren't going to be watching your videos anyway, so if they ever possessed an ethical bone in their body, that has over their life fractured so much that it is now dust.
The Franklin Syndicate, which ripped off millions from people around the United States with a promise of 520 percent increase per annum at the end of the 19th century, never gets any love in stories like this. The best part of the Franklin Syndicate is that two of the three principals got away with the cash and lived happily ever after, disproving the adage that crime does not pay.
Honestly, whoever robbed peter to pay Paul was the first ponzie scheme.
The debt the us owes isn't mostly to outside investors ( @22:30 like China and Japan that's only like 20%) most of the dept is to the us itself.
40% a month lol do people not know how to use a compound interest calculator??
Just $1 dollar at 40% monthly will turn into $1.9 TRILLION in 7 years smh if it's too good to be true, it probably is.
If you had a business idea that could generate that kind of money, you wouldn't need investors off the streets. People with money Only be linning up around the corner to invest.
One thing that always surprizes me is how none of those guys had an escape plan. With the billions they had at their disposal, they could have bought themselves a very nice piece of paradise in a place without extradition treaties (or even actively hostile) to USA. They most likely would never be able to travel to another country again but I think it is a small price to pay. Of course some sort of black operation could extract them but create an international incident specially if the guy is well protected and not something like a terrorist would be very complicated and maybe even impossible depending on where they go.
Not anymore. Sam Bankman-fried is the new king of ponzi.
That was a great episode I really enjoyed it keep up the good work preciate your content you put out
The problem with "the Fed is a Ponzi scheme" is that the returns on gov't bonds is absurdly low at 2-3% (inflation is usually 2%, so the Fed is only promising 0-1% return). Stocks have 10x returns, so even if it is a scheme, it's not a attractive one.
the ponzi scheme isnt the return on bonds, its the economy itself that isnt based on anything concrete
@@alxfonso4924 Bonds are backed by the US gov't. The gov't and its revenue is much more concrete and stable than the value of commodities like gold, oil, etc which fluctuates wildly (e.g., negative oil prices).
So, why are the U.S almost defaulting every 4 months? The U.S is the biggest ponzi scheme that ever existed
14:50 - 50 years in Jail.
19:00 - The Ego "is it fun being a billionaire"
20:25 - Not being able to ask questions is a RED FLAG
13:47 that wink bro... lmao
"he was charismatic.. and had a gift of talking' like every other con man.
These are all based in the USA lool, including the USA itself LMAO
Ken Griffin from citadel, "HODL my yayo-mayo."
Something I think it would be interesting to see you cover is the 2006-2012 new zealand finance company collapse. Mismanagement and outright fraud cost nearly 3 billion dollars. My grandparents were caught up in it to the tune of almost a million. They did everything right. Spoke to a financial planner, diversified their portfolio by both investing in a different company...but the financial advisor they spoke to was being given incentives to look the other way and not reveal the companies were almost in receivership...
Great video as always! I wouldn't mind a longer piece on each of the frauds you brought up (except for the Madoff story, of course).
Ponzi got shorted because people cashed out? What happens if everyone withdraws all the funds from the bank all at once?
That would be a run on the bank
It is impossible for everyone to withdraw their funds from the bank at once, no matter what the anarchist say.
Having an educated debate will be nice, but judging from your question, I am sure that you are definitely not educated in banking and financial institution. Spend more time reading books and less time browsing shitposts.
@@HonestFarmerLigue1Fan way to come across as a twat. Person asks a question and you start attacking them personally.
The Greatest Ponzi Scheme these days is a polish public social insurance instutution (ZUS).
Well you could cash out for a time from Ponzi, not so much from zus :P
the bitconnect guy on stage is talking like he's of those WWF guys with a mix of hiphop style 🤣