continuously obtain new sources of financing, often at an accelerating pace and/or ever-increasing interest rates until the borrower cannot secure more financing at any interest rate and becomes insolvent. The term was first coined by economist Hyman Minsky. Ponzi game In economics, the term "ponzi game" designates a hypothesis where a government continuously defers the repayment of its public debt by issuing new debt: each time its existing debt arrives at maturity, it borrows funds from new and/or existing lenders in order to repay its existing debt. Ponzi schemes in fiction The "Golconda Gold Bond and Investment Company" in the latter part of the O. Henry short story A Tempered Wind from the collection The Gentle Grafter (1908) is a Ponzi scheme, albeit with an unusual outcome. In Season 3 of Downton Abbey, Robert Crawley, resisting efforts to modernize the Downton estate, suggests instead to raise capital through investment. He has heard of "a chap in America" named Charles Ponzi "who offers a huge return after ninety days." This idea is immediately shot down by other Crawley family members. In Season 8 of Two and a Half Men, Alan Harper orchestrates a Ponzi scheme by borrowing money from his family for a business idea he has regarding placing ads for his chiropractor practice. Realizing that it's easier to simply pay them back using new money he can raise from others, he never follows through on his original idea and simply scams everybody. In Season 1 of Boardwalk Empire, the boyfriend of Annabelle is visibly nervous throughout episode 11 ("Paris Green"), and eventually confesses the he lost all his money to Charles Ponzi and is now completely broke. Given the timeframe of the series, it can be assumed he lost the money in the original Ponzi Scheme. See also Billionaire Boys Club Black Friday (1869), also referred to as the Gold Panic of 1869 Bucket shop (stock market) Chain letter Football Index Gary Sorenson Get-rich-quick scheme Hustle (TV series) List of Ponzi schemes Matrix scheme Minsky moment Money multiplier Non-fungible token Saradha Group financial scandal Steven Hoffenberg The Wizard of Lies Towers Financial Corporation White-collar crime United States Postal Inspection Service Notes, references and sources Notes References Sources External links Ponzi Schemes FAQ Information and advice from the US Securities and Exchange Commission Fraud Awareness and Prevention Information about spotting fraud from the US Commodities Futures Trading Commission Ponzimonium Free e-book