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Date:      Mon, 31 Dec 2001 01:50:27 -0700
From:      Brett Glass <brett@lariat.org>
To:        jgrosch@mooseriver.com
Cc:        Terry Lambert <tlambert2@mindspring.com>, chat@FreeBSD.ORG
Subject:   Re: Confirm Your PayPal Membership
Message-ID:  <4.3.2.7.2.20011231014644.00e7af00@localhost>
In-Reply-To: <20011231003819.A24218@mooseriver.com>
References:  <4.3.2.7.2.20011231011757.01d72730@localhost> <4.3.2.7.2.20011226145226.021974b0@localhost> <4.3.2.7.2.20011227092550.01c87ae0@localhost> <3C2FCA60.99829AA7@mindspring.com> <4.3.2.7.2.20011231011757.01d72730@localhost>

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At 01:38 AM 12/31/2001, Josef Grosch wrote:

>So, you are basically saying the PayPal is a ponzi scheme?

A Ponzi scheme is a bit different in that it claims to be
an investment. PayPal doesn't claim to give users a gain on
their money. But they likely have high overhead (due to the 
costs of employee salaries, bandwidth, fraud, fees paid 
to creit card companies, etc.) and could well spend 
substantially more than they can make on float. My suspicion
is that their liabilities exceed their assets as a result on
this, and that they could therefore not sustain a run.

--Brett


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