[youtube]http://www.youtube.com/watch?v=XJ8OjAB_e3g&feature=player_embedded[/youtube]

Mommy, what’s a Ponzi scheme?

Mommy: Well, Jimmy, let’s say you have two friends and they each had $50. And each of them had two friends and they each had $50.

Jimmy: Mommy, I don’t have any money.

Mommy: OK, well, um … Let’s say you have two friends and they each have two cookies …

And then the Cookie Monster comes along and …

Cookie Monster: COOKIE MONSTER LOOOOOOOOOOVE COOKIES!

A nom nom nom nom …

In this dramatic re-enactment, Jimmy Kimmel   recruits Ernie and the Cookie Monster from Sesame Street to help explain the Madoff Scandal in a recent sketch.

Tune in next week, when Ernie and Cookie Monster try to explain the AIG mess.

Mommy, where do bonuses come from?

Via CNBC