Planet Money Charles Ponzi's scheme
39 snips
Jan 21, 2023 
Mitch Zuckoff, a journalist and author of "Ponzi's Scheme," dives into the audacious life of Charles Ponzi, whose name is synonymous with financial fraud. The discussion reveals Ponzi's intricate tactics for scamming investors, rooted in his exploit of international reply coupons. As regulatory pressure mounted, his anxiety soared, creating a gripping narrative of deception. The collapse of his scheme not only unraveled his life but also showcased the timeless phenomenon of FOMO in investing—an impact that continues to resonate today.
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Ponzi's Skin Graft
- When a nurse suffered severe burns, Ponzi offered a large skin graft, spending months in recovery.
- This selfless act saved her life, showcasing his risk-taking nature.
Ponzi's Initial Idea
- Ponzi discovered an arbitrage opportunity with international reply coupons, aiming to exploit currency differences.
- He incorporated the Securities Exchange Company (SEC) before the actual SEC existed.
Secret Sauce is Suspect
- Avoid investments with unexplained details or "proprietary sauce" secrecy.
- Understand the full process before committing your money.
