In a classic Ponzi scheme, a fund manager promises overly exaggerated returns to a class of gullible, wealthy fools. The fools believe him and invest.
But think of where the money usually goes. Before the scheme implodes, the fund manager often goes on a massive lifestyle spending spree. Who benefits? Why, it’s obvious: the Ponzi scheme’s victims become accidental supporters of local businesses! They should be proud their money has gone to support the local $10,000 an hour massage therapist, the manufacturers of the Ponzi man’s $200,000 sports car and his $400 per bottle wine collection. This is indeed a healthy redistribution of wealth, and Madoff as well as Marx himself, praise his name, would be proud of such endeavors.