Comment by jansan
2 hours ago
By that definition every pyramid scheme is rational (of course only until you run out of greater fools).
2 hours ago
By that definition every pyramid scheme is rational (of course only until you run out of greater fools).
What's the pyramid scheme here? The Netherlands are the top producers of tulips today, seems like a sustainable business. A temporary inefficiency in markets does not make a pyramid scheme.
Pyramid schemes are defined by the price and structure. A business that sells knives is a fine business. A business that sells overpriced knives by promising that you can then find someone else to sell more knives for you at an even higher price is a pyramid scheme.
Selling tulips is a fine business. Selling tulips at an insanely high price by promising that the market for tulips will keep on expanding and increasing the price of tulips is a pyramid scheme. (Well, maybe not quite a pyramid scheme, the structure isn't right. But it certainly wasn't a sustainable business model.)
Cutco?