all over red rover, page-73

Why do we say MIS are PONZI scams?

This is because

(1) In good times when their MIS sales skyrocketed, they stole up to 60% of investors upfront application fees as "profit before tax", from which they pay a big tax and a big dividend;

(2) In bad times when their MIS sales tumbled, their had absolutely no money to maintain the existing MIS projects, pay rental or loan interests on underlining lands, or even pay workers wages - This is why all those MIS have to fail.