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Ponzi Schemes--in which a swindler touts outsize returns, parries questions about legitimacy with hefty dividends and creates the illusion of solvency by paying off early investors with capital raised from later entrants--are named after Boston businessman Charles Ponzi. From 1919 to 1920, the Italian immigrant coaxed thousands of...

Author: /time Magazine | Title: A Brief History Of: Ponzi Schemes | 1/8/2009 | See Source »

Ponzi wasn't the scam's first practitioner; that was probably a New York City grifter named William Miller, who fleeced investors out of $1 million--more than $20 million in today's dollars--in 1899. The cons have since grown: a Florida church netted $500 million in a 1990s...

Author: /time Magazine | Title: A Brief History Of: Ponzi Schemes | 1/8/2009 | See Source »

During the same session of the National Assembly, government officials announced with pride that the minimum pension, which is what many retired Cubans receive, had risen to the equivalent of $8.33 per month. True, access to health care is free, but the elderly still have to purchase medicines, which are...

Author: By Jorge I. Domínguez | Title: The Castro Regime at Age 50 | 1/8/2009 | See Source »

Here's the problem with that math: the tax system brings in about 18% of GDP, less in a recession - and Obama is even floating a two-year, $300 billion tax cut (roughly 1% of GDP per year). Even worse, our federal revenues are nearly exhausted by just four areas...

Author: /time Magazine | Title: The Case for Bigger Government | 1/8/2009 | See Source »

As 2009 settles in, California isn't quite the Golden State anymore. School districts are expected to lose billions of dollars in financing for improvements and development, and health-care services for the elderly, infirm and poor will most likely deteriorate. State employees are facing payroll cuts, unpaid leaves and...

Author: /time Magazine | Title: The Great California Fiscal Earthquake | 1/8/2009 | See Source »

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