Ponzis (Monroe, Carvajal and Pattillo)

Perils of Ponzis is article published in IMF Review by Hunter Monroe, Ana Carvajal, and Catherine Pattillo. Ponzi schemes are a type of investment fraud in which returns are paid to investors out of the money paid in by subsequent investors rather than from genuine profits generated by an investment or business activity, most investors lose their money. They can even lead to political and social instability when they collapse. Regulators need to stop Ponzi schemes before they gain momentum, especially in developing countries. see: http://www.imf.org/external/pubs/ft/fandd/2010/03/pdf/monroe.pdf