Bernie Madoff has jumped his scheme simply by insuring people a high percentage return on their money. Madoff might not realize been doing anything to even generate such a return but, the course you pay those people their interest every year is to go to other investors who can provide money to do so. Thats the core of a Ponzi scheme: using naked investors money to pay off the returns of old investors.
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This escalates because now the new investors need to get their return so more and more people need to get involved. A Ponzi scheme can only work if the investors are continually putting money into the system, but as soon as people start needing their money back then the scheme breaks down. This started to occur in early 2008 when the economy was taking a hit and individuals postulate money. However, by then it was too late and numerous fare of people lost their life savings.
The Madoff scandal has many opportunities to be looked at and investigated to make sure it abided to the laws but, action was never taken. The voluminous complain now is how did such a scheme go on for so long and it seems that...If you want to get a full essay, order it on our website: Ordercustompaper.com
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