MIS projects are a kind of Ponzi scheme.I just copy the...

MIS projects are a kind of Ponzi scheme.

I just copy the following paragraphs from

http://www.theaustralian.news.com.au/story/0,25197,25395516-23634,00.html

"REFLECTING on Timbercorp's demise, we're struck by the similarities between the managed investment game and a Ponzi scheme. After all, both rely on a flow of new subscriptions to maintain the caper.

"MIS agri-schemes lure investors (or "growers") with a tax deduction and the promises of an eventual commercial return on the produce. Given the long lead time to harvest, it takes years before the rosy prospectus projections can be proved.

"Given that Ponzi schemes are illegal and MISes aren't, we won't stretch the comparison any further. Suffice to say Timbercorp became unstuck by dwindling subscriptions, high debt and poor returns from projects such as grapes and hothouse tomatoes."