So as if the current economic times with soaring health care costs, massive unemployment, obscene government spending, its resulting dizzying deficit and ever increasing energy cost were not enough, someone in their entrepreneurial cunning has thought of a new way to take peoples money. The devastation of Bernie Madoff’s misdeeds has obviously gone unnoticed by both the consumer and the no- gooder.

What are these gifting parties? First, those organizing such parties deny they are pyramid schemes and have employed counsel to argue their position. However, to me believing this would be the same as arguing the world is not round. Each group consists of eight members at any given time. These gifting parties currently are women only. The example in the article explains the pyramid having four members at the base. These are the new recruits and they must give $5,000 to the top member to buy in to the group. In between is a row consisting of three members and another with two members. At this point I am sure you see the irony the actual membership is a pyramid where the new members ( bottom ) pay the top member ( point ) . Never does it mention the gifting party doing anything to create income that is not a direct investment by another recruit. Therefore, you can see that everyone but the top member loses should a group find themselves unable to recruit new members. And as this scheme, catches on the pool for new recruits will dry up.

If you happen to make it to the top, you get $40,000 and can either leave or buy your way back in to the bottom again for $5,000. This works because people feel desperate now and just would do anything for a quick windfall to take care of things until the economy turns around. However, this like the many frauds that preceded it will leave the majority of women who participate worst off than before.

Matt