Madoff story continues to occupy the news these days (e.g., this one from NYTimes). Yesterday, Satyam, the No. 4 Indian IT outsourcer, broke the news with giant accounting scandal (BBC news, wiki: Satyam).
But the story does not end here. In my mind, there are many other ponzi schemes in our lives, and sometimes people just ignore it for various reasons (don’t want to face reality; irrational exuberance etc).
Dot com technology bubble: new stock holder (trader) bail out previous stock holder (trader);
Housing bubble: new home owner (speculator) bought high from previous home owner (speculator).