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by jansan 16 days ago
By that definition every pyramid scheme is rational (of course only until you run out of greater fools).
1 comments

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?
That was the comparison, yes