What common phrase is associated with Ponzi schemes and similar activities?
Stirring the Pot
Robbing Peter to pay Paul
Taking the money and run
Throwing good money after bad
Answer
The expression "robbing Peter to pay Paul" aptly describes Ponzi schemes and other deceptive practices involving the redistribution of funds. It refers to the act of using money obtained from new investors to pay off existing ones, creating an illusion of profitability and sustainability. This practice ultimately leads to the collapse of the scheme when no new investors can be found.
Ponzi Scheme Prodigy: The Charles Ponzi Quiz
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