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.
A mugging is profitable for one of the parties, it doesn’t make the entirety of the mugging a profitable endeavor. Whether something is profitable depends on what level you’re measuring profitability for.
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.
A mugging is profitable for one of the parties, it doesn’t make the entirety of the mugging a profitable endeavor. Whether something is profitable depends on what level you’re measuring profitability for.
I regret that I have but one up vote to give.