[qwerty456127]

IMHO the one and only thing a government is to do to protect the people from Ponzi and other schemes is to make sure everybody leaves school with conscious knowledge of the following:

1. Every investment is a risk, you may win or you may loose. 2. The chance of loss is usually proportional to the potential profitability estimated. 3. Never invest what you can't afford to loose easily. 4. Don't be mad on the friend who has introduced you to the business if he didn't explicitly guarantee you will win - that was your choice. 5. Whoever says there is no risk and the success is guaranteed - lies, don't believe them and don't rely on them.

Actually, if a person doesn't know this by the time they finish the school the time they've spent there has probably been wasted. As for me I've learnt about Ponzi scheme from a Khan Academy lecture (and yes, my time at school was a waste mostly, that's a pity there was no Khan Academy back in those years).