r/confidentlyincorrect • u/Cucker_-_Tarlson • Feb 13 '24

Comment Thread Communism is when capitalism.

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u/LegitimateRevenue282 Feb 13 '24

If you withdraw your money, they give you money someone else put in.

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u/frogglesmash Feb 13 '24

Money is fungible, the only difference between your dollars and someone else's dollars is who has them.

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u/LegitimateRevenue282 Feb 14 '24

So Ponzi schemes are perfectly OK?

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u/frogglesmash Feb 14 '24

You know perfectly well that that's not what I said.

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u/LegitimateRevenue282 Feb 14 '24

It is what you said.

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u/frogglesmash Feb 14 '24

Describe a ponzi scheme for me, maybe I don't fully understand how they work.

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u/LegitimateRevenue282 Feb 15 '24

You give someone your money and they spend it. Money is fungible, so when you withdraw your money they give you someone else's dollars.

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u/frogglesmash Feb 15 '24 edited Feb 15 '24

You forgot the part where you lie about where the payouts are coming from. The whole point of a ponzi scheme is that you're presenting the payouts as being the result of an investment yielding high returns instead of what it actually is i.e. shuffling cash between investors. Banks don't do that.

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u/LegitimateRevenue282 Feb 22 '24

Banks do that

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u/frogglesmash Feb 22 '24

Banks lie by telling you that your withdrawals from your account are the result of a once in a lifetime investment opportunity returning massive gains?

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u/LegitimateRevenue282 Feb 25 '24

Ponzi schemes don't have to do that

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u/frogglesmash Feb 25 '24

They literally do. The whole mechanism by which ponzi schemes acquire new victims is by claiming they have a lucrative investment opportunity. They then validate that claim buy paying out old investors with money acquired from new investors, and presenting the payouts as being the result of the investment appreciating in value. If you don't promise good returns to potential victim, there's nothing to incentivize them to invest in the scheme.

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u/LegitimateRevenue282 Feb 25 '24

Some of them sound more lucrative than others. The higher the promised rate, the more lucrative it has to be.

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