The 1920 Collapse of Charles Ponzi's Scheme (Episode 61)

06/06/22 • 62 min

In 1903, a young Italian man emigrated to America in hopes of finding work, love, and money. Over the following thirty years, Charles Ponzi would work dozens of jobs, form several companies, marry a very nice stenographer, and become an important (and notorious) member of the immigrant Italian-American communities he landed in.

On this episode, we're taking a deep dive into Ponzi's background and the dozens of smaller scams that informed the financial scheme he's best known for - the wild success and inevitable collapse of his Securities and Exchange Company, a fraud which caused the collapse of six banks and removed 20 million dollars from the local economy.

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Sources for this article include:

"Charles Ponzi - Biography (1882–1949)", Staff writer, Biography.Com, 2014

"In Ponzi We Trust", by M. Darby for Smithsonian Magazine, 1998

"The Rise of Mr. Ponzi", by C. Ponzi, 1935

"Charles Ponzi, The Financial Idiot Who Drove Boston Money Mad in 1920", Staff writer, New England Historical Society, 2021

Love the show? Support us on Patreon, at ⁠www.patreon.com/RelativeDisastersPodcast⁠.

Sources for this article include:

"Charles Ponzi - Biography (1882–1949)", Staff writer, Biography.Com, 2014

"In Ponzi We Trust", by M. Darby for Smithsonian Magazine, 1998

"The Rise of Mr. Ponzi", by C. Ponzi, 1935

"Charles Ponzi, The Financial Idiot Who Drove Boston Money Mad in 1920", Staff writer, New England Historical Society, 2021

Previous Episode

The Astor Place Riot of 1849 (Episode 60)

On May 10, 1849, wealthy New Yorkers set out for a night at the Astor Place Opera House to enjoy English actor William Macready's performance in "Macbeth". A few streets away, however, fans of rival American actor Edwin Forrest were preparing to 'express their opinion' at the urging of inflammatory press pieces and Tammany Hall. Before the night was out, Astor Place would be the scene of chaos, rioting, and the deaths and injuries of dozens of New Yorkers, police, and soldiers.

On this episode, we're discussing theater hooliganism, William Shakespeare, English vs. American acting styles, and how the New York State militia came to be firing cannons at unarmed American citizens in the middle of Manhattan.

Love the show? Support us on Patreon, at ⁠www.patreon.com/RelativeDisastersPodcast⁠.

Sources:

"Account of the terrific and fatal riot at the New-York Astor Place Opera House, on the night of May 10th, 1849; with the quarrels of Forrest and Macready, including all the causes which led to that awful tragedy! Wherein an infuriated mob was quelled by the public authorities and military, with its mournful termination in the sudden death or mutilation of more than fifty citizens, with full and authentic particulars" by H.M. Ranney, 1849

"Remembering New York City's Opera Riots", S. Simon (host), Weekend Edition, 2006

"When New York City Rioted Over Hamlet Being Too British", by B. G. Kellem for Smithsonian Magazine, 2017

Next Episode

The K-Pg Extinction Event of 66 MYA (Episode 62)

It's our most dramatic disaster ever this week, as we take a look back in time to explain what happens when an 10-kilometer-wide asteroid hits a planet with life on it. In short: the dinosaurs perish, an ice age follows global forest fires, and the air quality hit an all-time low for ten years straight. On the other hand, after the impact, mammals had the perfect conditions to become bigger and brainier, sharks survived quite nicely, and plant and insect life diversified and flourished.

On this episode we're talking asteroids, glitter, impact craters, dueling geologists, and why fur was THE fashion accessory for Fimbulwinter.

Love the show? Support us on Patreon, at ⁠www.patreon.com/RelativeDisastersPodcast⁠.

Primary Sources for this episode include:

"Extraterrestrial Cause for the Cretaceous-Tertiary Extinction" by Luis Alvarez, Walter Alvarez, Frank Asaro, Helen V. Michel

Science Magazine Volume 208 Number 4448, 6 June 1980, pg. 1095-1108

"The Chicxulub Asteroid Impact and Mass Extinction at the Cretaceous-Paleogene Boundary" by Peter Schulte, et. al.