- Author: Marita A. Panzer
- Publisher Friedrich Pustet, Regensburg
- Series: Little Bavarian Biographies
- ISBN 978-3-7917-3435-4
- Print: €16,95 / Kindle: €13,99
- Paperback, 124 pages
- Released: Sept 2023
Ultimately, she was the founder of the first Ponzi scheme in Germany, and during its collapse in 1873, over 30,000 people lost their savings. Therefore, Adele Spitzeder is considered a fraudster. Author Marita Panzer explains in her book how Adele Spitzeder almost inadvertently slid into this situation. She avoids simple black-and-white judgments, instead revealing the many shades of gray in between – which is refreshing!
Originally, Spitzeder was an actress. She might have been successful, but various reasons prevented her from seamlessly securing engagements at major theaters. She became unemployed, and as expenses for housing, food, clothing, etc., continued, she quickly found herself in financial trouble. In this tense financial situation, the wife of a carpenter lent her some money, and Adele not only promised to repay the amount but also to interest it at 10% per month!
From actress to bank founder
This was the beginning of a vigorous money trade, as Adele Spitzeder paid the promised interest, leading people to rapidly lend her more money, which she used to pay the capital along with the interest. She also introduced a reward system: those who brought new clients could earn an additional 5% of the investment sum – in principle, modern sales systems still operate this way: clients refer clients and receive a bonus for it.
Spitzeder not only founded a bank but was also involved in all sorts of business ventures. Was she warm-hearted, cunning, naive, or determined? Probably a bit of all. One can imagine how the directors of local savings banks made her life difficult, as their customers withdrew their money to give to Adele. And during the reign of King Ludwig II, the male banking leaders certainly didn’t want to be outdone by a woman!
But every Ponzi scheme meets a sudden end when a rush on the system begins. Spitzeder could no longer withstand the run on her deposits in 1877/73. Her financial operations collapsed, and she was convicted and imprisoned at the age of 41.
Conclusion::
A thrilling historical novel! The author provides necessary background throughout the book to better understand the situation of an unmarried woman at the time. She adeptly describes the interplay between reason, greed, and gullibility, and it is exciting to read how a woman, cornered by circumstances, constantly devised new tricks to survive in those times. From special conditions for police officers to influencing the press, it's all included, despite Adele Spitzeder having no formal training in finance or psychology. A fascinating little book!
Anke Dembowski is a financial journalist and author of various investment fund-related and other financial books. She is also a co-founder of the "Fondsfrauen" network.