|
Ponzi Outline and research by various sources The heart-wrenching life of the flamboyant Charles Ponzi, inventor of the classic pyramid investment scheme that bears his name (in which new investment pays off old investors) and which some say forms the basis for our Social Security system. Ponzi was an Italian immigrant in the 1920s whose only wish was to make enough money to bring his mother over from Italy. He hit upon a legitimate way to make money by selling return postage coupons to immigrants. His plan got out of hand and he became one of the most wealthy men in the country only to lose it all when a relentless government official finally brought him down. It's 1920, and an America recovering from World War I is in the throes of contradictory social and economic forces: rampant inflation and unemployment on the one hand and a heady, what-the-hell optimism on the other. Anything could happen in America. Anyone could make a million. Carnegie did it, Ford and Rockefeller, too. Immigrants flooded to America hoping to be a Carnegie or Morgan. CHARLES PONZI was one of the hopeful immigrants who knew that all it took was a good idea — but he knew how to make the good idea work. He had come close to success many times before in Italy, Canada, and hopscotching around America. For nearly ten years he had grasped the prize and then lost it. At age 35 he was living in Boston with a young wife, ROSE, and all her had to show for the years was a checkered past and two prison terms. Undaunted by setbacks, Ponzi would spend his last dollar on a good Havana cigar. The word "charisma" could have been invented for Ponzi; like movie stars and politicians, he knew the importance of a successful appearance — the image of wealth was crucial to winning confidence. Though small in height, he cut an impressive figure as he strolled jauntily down the busy streets of Boston. Always nattily dressed complete with boutonnière, a straw skimmer perched on his head, he sported a gold-headed walking stick and — most important — a broad, happy smile. Ponzi dazzled everyone with snappy conversation filled with hints of impending deals with "the big guys at the bank". People assumed he was doing well even when he was flat broke. Ponzi was smart enough to learn and profit from past mistakes. The next time he got a good idea he would think it through very carefully. Ponzi's story is one of a little guy who makes it big: big enough to buy the bank that wouldn't hire him when he was poor. And just as he was about go completely go legit, he is tragically brought down. Ponzi was a hero to those whose fortunes he helped build and to those who owed their good life in America to this colorful little man who died penniless and alone. This
is a terrific period rags-to-riches-to-rags story that could also be written
for the stage.
|