In the world of finance, we, as bankers, should be familiar with swindles that have assumed the character of ‘Ponzi finance’ - a type of game in finance played by the archetypal swindler, Charles Ponzi.
Economic theorists have elaborately analysed how a borrower, and possibly even a banker, who has control over the price in the market in which he issues his own personal debt may choose to play ‘Ponzi game of financing’: repay old debt with issuance of new debt to a point where either the borrower runs away with the money and disappears or, if the borrower is a banker, he dips in the bank’s till.