We assume that people who fall for Ponzi schemes are greedy or uneducated. Financial psychologist Simon Clark proves the opposite in "The Ponzi Paradox." From Charles Ponzi to Bernie Madoff and modern crypto-rug-pulls, victims are often doctors, lawyers, and experienced investors. Clark explores the psychology of "Affinity Fraud," where scammers exploit shared community ties (religious groups, country clubs) to bypass skepticism. He explains that intelligence actually makes people more vulnerable, as they are better at rationalizing red flags and believe they are too smart to be duped. The book dissects the anatomy of the con: the "Hook" (exclusive access), the "Line" (consistent, smooth returns), and the "Sinker" (social proof). Clark provides a "Skeptic's Toolkit" to identify the structural impossibilities of these schemes. It is a chilling reminder that in the world of finance, if you don't know where the yield comes from, you are the yield.

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