There’s no such thing as “financial innovation”. There’s just novel ways to fleece people of their money and dodge regulations. Just because there are some winners in a pyramid scheme doesn’t mean the scheme itself is profitable.
There’s a difference between profitability and productivity.
A Ponzi scheme is profitable, for the person running it. It is not productive in that it (generally speaking) produces nothing of value. Pyramid schemes can be both profitable and productive, but they’re also innately exploitation and based on a supply of new people to exploit.
There’s no such thing as “financial innovation”. There’s just novel ways to fleece people of their money and dodge regulations. Just because there are some winners in a pyramid scheme doesn’t mean the scheme itself is profitable.
There’s a difference between profitability and productivity.
A Ponzi scheme is profitable, for the person running it. It is not productive in that it (generally speaking) produces nothing of value. Pyramid schemes can be both profitable and productive, but they’re also innately exploitation and based on a supply of new people to exploit.
I regret that I have but one up vote to give.