1. A Ponzi Scheme is a form of fraud, so basically how it works is, you find new investors and offer them higher returns than other investments, in short term returns that are very high or unusually consistent. But it only works until you start running out of money to pay the returns.
2. In the video a woman was talking about how Madoff had only asked for 10%, so to her that sounded like a reasonable percentage. The woman also said that if Madoff asked for 15% or 20%, she would have gotten a little suspicious. Also another reason it went on as long as it did, is because he was so well known as a nice and helpful guy. he had promised he people he scammed a lot of things and they trusted him. They never had a thought of Madoff scamming them. Everyone knew him as the successful businessman and chairman for NASDAQ, so he was a well trusted man.
3. A person that is trying to start a ponzi scheme are usually very nice to the investors that are going with them. they make all these promises but really they're just criminals that act like they care about you when they really just care about themselves. they say all the nice stuff that people really wanna hear but the only person who really knows what is going on is the ponzi artist.