Posted tagged ‘Ponzi schemes’

From the Sphinx to Omar Sharif

September 30, 2009

The basic business concept of a pyramid scheme defies all laws of building engineering and is totally at odds with the Egyptian model pyramidical structure. All the Pharaoh’s men constructed the masonry edifice from the ground and worked vertically (or diagonally, if one is being pedantic). This is sound practise as the effects of gravity would have caused the apex to fall if it were made first.

Contrast this with the geometric pyramid schemes utilised by, it’s got to be said, swindlers. They are at the head of the network with bigger degrees of multiples below them. New investors are constantly needed with the promise of high returns.

There are winners in this shady enterprise but eventually patrons and thus money supply runs out. Avoid pyramids like the plague; they are the eleventh plague of Egypt.

While watching an old episode of Coronation Street, the characters of Martin and Gail Platt put me in the mood for roulette. I wanted to test the old martingale system, a kind of precursor to pyramid schemes, which sometimes needs copious amounts of money but I was flush so what the heck.

The martingale or doubling-up method invites the strategy of doubling your bet after every loss until you win. A sure fire thing so off I went to the tables, a latter day Dostoeyevsky.

Red had come out four times in a row so I staked £1 on black. Red. £2 on black. Red. £4 on black. Red. £8 on black. Red. £16 on black. Red. £32 on black. Red. £64 on black. Red. £128 on black. Red. £256 on black. Red.

By this time I had calculated red had turned up thirteen times and I had staked £511.
£512 on black. Red. £1024 on black. Red. £2028 on black. Black, black at last, ya beauty.

I was handed over £4056, £2028 of which was my stake. Including previous losses all in all I had bet £4055 and was therefore £1 in the red or should that be black. Proof indeed that at the wheel, fortunes can be won and lost. Lady luck had smiled on me, showering me with Cleopatran riches.