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Pension schemes viewed as a Ponzi scheme

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  • Pension schemes viewed as a Ponzi scheme

    A friend (financial controller I believe) was watching an explanation on the news about how Madoff's Ponzi scheme worked, and it occured to him, "wait a minute, isn't that how pension schemes work?"

    I just thought I'd share that thought for the day.
    It's Economics vs Thermodynamics. Thermodynamics wins.

  • #2
    Re: Pension schemes viewed as a Ponzi scheme

    Originally posted by *T* View Post
    A friend (financial controller I believe) was watching an explanation on the news about how Madoff's Ponzi scheme worked, and it occured to him, "wait a minute, isn't that how pension schemes work?"

    I just thought I'd share that thought for the day.
    Especially here in Europe were we have negative population growth.

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    • #3
      Re: Pension schemes viewed as a Ponzi scheme

      The US treasury market is the ultimate ponzi scheme...

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      • #4
        Re: Pension schemes viewed as a Ponzi scheme

        Originally posted by phirang View Post
        The US treasury market is the ultimate ponzi scheme...
        I agree with this sentiment, but I thought you were keen on treasuries / deflation / ongoing dollar strength? Have you changed that view?
        It's Economics vs Thermodynamics. Thermodynamics wins.

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        • #5
          Re: Pension schemes viewed as a Ponzi scheme

          Originally posted by *T* View Post
          I agree with this sentiment, but I thought you were keen on treasuries / deflation / ongoing dollar strength? Have you changed that view?
          I am not sold on inflation quite yet: oil at $40 belies that.

          The real question is can the Fed rev up reflation and get china to buy agencies.

          If that's the case, then dow 12k, here we come!

          Agency mortgages would also be a fool-proof investment, but they've already been front-run...

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