Your Questions About Is The Stock Market A Ponzi Scheme

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Robert asks…

Did Bernie Madoff have any money invested in the market at all?

I find it hard to believe that he didnt have any actual money invested. Somehow, our brilliant finance journalists seem to pass over this detail. They just keep repeating thePonzi Scheme” buzzword.

Justin answers:

Madoff had two parts to his business:

(1) A brokerage called Bernard L. Madoff Investment Securities LLC. This did trade money on the stock markets, through its trading clients.

(2) His investment advisory business. Madoff ran this on a separate floor and kept its financial statements secret.

Even his two sons, who were senior employees of (1) knew little about business (2).

So yes, there was money invested, but it was business (1) while business (2) was just a Ponzi scheme, which incredibly was running for more than 40 years!

But the consequences of his dishonesty have been terrible.

Hope this helps!

Katy Ortega
http;//www.biz247.biz

Charles asks…

What would Republicans do for the old people and social security?

what are their plans? do they still want them to invest into the stock market and take away social security?

Justin answers:

As a Conservative ( Not a Neo Con ) I believe older people who paid into to it must continue to get it back until they die. But it should be fazed out as it is not consistent with the role of Government in a free society. Younger people should at least have the option to opt out of this Ponzi scheme.

The way to pay for it is to get government back to it’s constitutional role. If all the military bases overseas were closed that in itself is over 500 BILLION a year. This would help sure up the money to pay back the people from whom it was taken from.

After that most Federal agencies should be closed is not outlined in the Constitution. This means leaving the majority of the power to the states. And even better if at the local level.

A change in what the governments role should be has to happen in order to right the ship. But as long as Americans think the government should police the world and take care of everyone cradle to grave….It will never change. We will run massive deficits until the dollar eventually collapses.

George asks…

Are Democrats letting Social Security become the biggest Ponzi scheme of all time?

A Ponzi scheme is a fraudulent investment operation that pays returns to investors out of the money paid by subsequent investors rather than from profit.
They will not let Republicans overhaul the system by letting us invest our own money.

We pay NOW for the people receiving the money…the Government uses our FICA tax to pay current retirees.
We did not have a lot of money in the stock market so we would have had our money invested in something else. Our kid’s college funds have GROWN.

Justin answers:

Letting it? They’re insisting on it.
Remember the SS reform debates in the early Bush years? 100% of the Democrats in Congress said SS WILL POSITIVELY CRASH catastrophically in NO MORE than a few decades unless fundamentally changed.
Also, 100% of them DEMANDED we make NO changes whatsoever.

Good thing we dodged that stock market bullet.
If you’re ready to retire and had your SS money in Stocks instead of in SS, you’d ONLY have about a 1200% return. (not exaggerating, and yes, that’s AFTER the “crash.” If you retired before the Democrats got Congress, you’d have 2500%) Thank God Democrats prevented THAT debacle!!

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