In the 1920s, Charles Ponzi tricked thousands of New England residents into investing in a postage stamp speculation scheme. The annual interest rate for bank accounts was five percent at the time and Ponzi promised investors that he could provide a 50% return in just 90 days. He initially purchased a small amount of international mail coupons to support his scheme, but then started using incoming funds from new investors to pay purported returns to the earlier investors.
Source: SEC.gov
Image Source: Boston Public Library
The Great Correction: Inflation, Interest Rates and the Bond Market
December 6, 2022
