Sunday, May 13, 2007

The Great Pyramid of Korea

This is the equivalent of using one credit card to pay off another credit card. Although remaining solvent, the BoK descends further into debt.
Such a scheme is also called a Ponzi scheme. Ponzi schemes eventually collapse leaving the last investors with huge losses. This is why Ponzi schemes are illegal. If any individual in Korea were to set up a similar scheme, they would be risking a prison sentence.

Source: Looming Disaster for the Bank of Korea - OhmyNews International

1 comment:

Té la mà Maria said...

irreverent, iconoclastic, ecléctic e liberty

http://telamamaria.blogspot.com
in Catalonia - Spain

thank