Your Questions About Stock Market Is A Ponzi Scheme

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William asks…

I don’t think Dave Ramsay is good for people now, I think people should save their money not pay off mortgages?

Do you agree or disagree & please tell why. I think years ago that was great & did that with my first house. Now I think people are just helping banks & I am suspicious that Ramsay is getting a nice pay check to work for banks.

I think people should hold onto any cash they can get cause if they had to move & put their life savings in a house they had to abandon they would rather have the money. People need flexibility & mobility. What do you think?

Justin answers:

I consider the coherent citizen a very rare commodity. After all; my view is we are fed, fattened, and herded like cattle by corporate interests, advertisers and marketers with their psychological tools to behave as a group. Group think results in higher profit. An ever increasing population results in a larger market to exploit. Independent thought is essential for the individual, yet continually negated via propaganda.
I am aware of numerous people that have ended their mortgage payments, and are moving forward, away from the financial decisions which led to market making in real estate. Capitalist economy is a form of Ponzi scheme; from the financial institutions, to the stock market, to television and FCC media generally.
Keep on thinking free, make your best decision… For you. FTW

Richard asks…

what does it mean to privatize social security?

why would privatizing social security be good?

and why would privatizing social secuirty be bad?

Justin answers:

Social security is already insecure by Government.

Because the market is down the naive are out in abundance with statements about how lucky everyone is to not be able to invest their own money…but let me remind you, while the markets may be down, it is the Social Security fund that is teetering on bankruptcy.

Also, there has never been a 30 year period in the history of Social Security where the S&P didn’t completely blow away the returns on Social Securuty (look it up)…even if you were 100% in stocks today, having started 30 years ago you would have more money than Social Security delivers.

No one would have lost all their money. Its Always been conventional wisdom to convert most of your investments into safe stocks and bonds 5-10 years prior to retiring, so if you were invested 100% in the market and prepared like everyone else for retirement, you would be just fine.

Don’t let the naive, uneducated, or down right ignorant people fool you, a guaranteed 2% return built on a Ponzi scheme is not a good deal.

John asks…

Is bad behavior really about low self-esteem?

Bad behavior can be anything from acting like you’re better than everyone else to insider trading on the stock market, from shop lifting to ponzi schemes.

Justin answers:

It all depends on how the person was raised and what kind of morality was instilled in him/her.

We live in a country where anyone can say ‘It wasn’t my fault; I have alcohol/drug/sex/esteem issues’, etc. Man, and I mean generic ‘man’, is a competitive beast, like all other animals. The difference is we choose to intentionally hurt/kill people and animals don’t.

For some reason, we like to inflict pain on each other, to the point of death. That DOES make us the deadliest species.

Steven asks…

What will happen to America now?

I’m really worried about America, and what will happen to it in the next four years…
Obama took it easy for most parts in his first term, because he knows that he has to be re-elected again in four years in order to continue his presidency.
And in doing so, he raised the debt by TRILLIONS, increased the unemployment, destroyed the stock market, and more.

What is he going to do in the next four years? There’s nothing stopping him – he has no limits. He doesn’t care what he does now, because he will have finished his presidency.
Any thoughts?

Justin answers:

I’ll tell you exactly what happens over the next 4 years…..the end of authoritative government.

The progressive era started with Woodrow Wilson (who got in bed with the banks and started the Federal Reserve Act)

The next progressive, Barrack Hussein Obama has blamed American free speech on the murder of Americans…instead of the muslims who murdered them.

He got in bed with the Federal Reserve (bernake) to win re-election.

The game is over for the United States…

His next four years:
1. Obama will try to let homosexuals sodomize children.
2. Obama will give amnesty to illegals (to try and prop up the ponzi schemes of the past, they are bankrupt, the only way to keep ponzi schemes going is to add new entrants)…..unfortunately those entrants have to have jobs…
3.And there will be no job creation, because the United States was already bankrupted by Fannie/Freddie and the socialist housing collapse.

He’ll do some other crazy things like “cap and tax” for global earth worshipers etc. But the United States is already bankrupt. None of his plans will work.

At some point, he goes nuttso…and tries to start killing Americans himself.

Then, Judgement.

Michael asks…

After the first six years of absolute rule in the Bush Adm, do you think the Republicans wished they would?

have done things differently? Do you think they wished they would have paid closer attention to the huge deficit they were building up with the Iraq war and tax cuts for the rich. What about Sen Phil Gramm’s promoting dervivatives?

Justin answers:

Bet they wish they had worked for the good of 95% of the American people instead of just the wealthiest 5%.

I guess this is not really fair. A lot of times, helping the wealthiest 5% does help the rest of us to, but it is frustrating to see a small surplus turned into a huge deficit pretty much overnight. A lot of this has to do with the War in Afghanistan (with I thought was “just”) and the war in Iraq (which I couldn’t believe Bush started before Afghanistan was finished, and then with such poor plans on what to do once Saddam Hussein was out).

The derivatives issue was government back cooperate fraud to skirt the free market (i.e. Use of unconstrained capitalism to enrich the few at the cost of the majority). The free market REQUIRES “perfect” information (or as close as possible to perfect. The purpose of the derivatives was to make the so complicated that the risk could not be determined. The sellers could push them at a higher price by calling them “low risks” and nobody could tell if this was right – not even the people who made them. This breaks the a major rule of the free market, and has resulted in a huge costs to the American people while the bankers who pushed the derivatives cashed in. Had the derivatives been “transparent”, they would have likely been valued lower, and potential buyers could have better managed the risks. Now, ALL these types of instruments are “worthless” and Wall Street wants the government (the American Tax payer) to buy them at a value Wall Street determines is correct.

Another rule is is you take the risks, you get the benefits and vice-versa. The people who made the bad loans and formed derivatives out to them to hide the true risks sold them for huge profits. Many of them are not assuming the risks of making bad loans, instead passing them off to unwary stock-holders who got taken. This is another violation of the free market. Now the stock holders need to be bailed out.

I think Phil Gramm is a politician. He sees HE can profit, so to heck with the free market until he gets al he thinks he is entitled to. Somebody was nominated for a Noble Prize in economics for a theory that politicians act first in their own self interest – this is before the interest of the people they represent. Use that model to understand Phil Gramm’s actions.

Both parties had a hand in this, but the Bush administration was one that was not into SEC oversight of Wall Street. This is evident from the giant Ponzi scheme report to the SEC over the past decade that they never investigated. Other administrations were nearly as bad (Clinton and Regan for example). Banking deregulation started Carter and went into overdrive under Regen. Some good changes happened, but under-regulation is an open invitation for fraud like we have been seeing the past decade or 2.

Free market capitalism (Capitalism CONSTRAINED by the rules of the free market – see Adam Smith’s “The Wealth of Nations”) benefits ALL society.

UNCONSTRAINED capitalism benefits only the unscrupulous at the expense of everybody else (see Phil Gramm and the makers of these impossibly complex derivatives).

Chris asks…

How do I determine the right price for a stock?

Justin answers:

By studying technical analysis and analyzing the stock with all information you can get. All my shorterm indicators say that the market is over priced. Longterm indicators say that they are fine and under priced. Fundamentals say the market is worth nothing as this entire system is only a PONZI scheme


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