Your Questions About The Stock Market Is A Ponzi Scheme

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Paul asks…

Question about HYIP…?

This is a HYIP website
SunGlint, they say they give 40% for 4 days that is 160% so it mean If I invest $1..I will get $2.6 in return?
Is that 4 sure?

Justin answers:

Check wikipedia.org and type in HYIP. Here is a excerpt.
A High-Yield Investment Program (HYIP) is a type of scam. At one time, it was used to refer to an investment program which may have offered a high return on investment. The term “HYIP” was abused by the operators of scams to camouflage their scams as legitimate investments. Due to this overuse by the operators, HYIP has become synonymous with scam or Ponzi scheme.

HYIPs disclose little or no detail about the underlying management, location, or other aspects of how money is to be invested because no money is invested. They often use vague explanations, asserting little more than that they do different types of trading on various stock markets or exchanges to generate the returns they purport. The SEC has said the following on the matter: “These fraudulent schemes involve the purported issuance, trading, or use of so-called ‘prime’ bank, ‘prime’ European bank or ‘prime’ world bank financial instruments, or other ‘high yield investment programs.’ (‘HYIP’s) The fraud artists… Seek to mislead investors by suggesting that well regarded and financially sound institutions participate in these bogus programs.”[1]

An overwhelming number of HYIPs are Ponzi schemes, in which new investors provide the cash to pay a profit into existing investors’ accounts.[citation needed] This approach allows the scam to continue as long as new investors are found and/or old investors leave their money in the scheme in hopes of gaining interest on their principal payment. Investors are usually presented some form of an appeal to emotion or faith that the HYIP will help investors achieve quick financial freedom.[2] HYIPs may also mirror Pyramid Schemes by offering current investors incentive commissions, for example 9% of current investment, to recruit new investors.

The introduction of e-currencies has made it possible for HYIPs to operate on the internet and across international boundaries, and to accept large numbers of small denominations. HYIPs usually accept deposits by either e-currency, like e-gold, and INTGold, or use specialist third party payment processors like AlertPay, SolidTrustPay, CEPTrust, TriStarMoneyChangers and StormPay

So to answer your question, no odds are you will not get back 2.6. Odds are you will get NOTHING back.
Remember if the deal is too good to be true, it isn’t.

Charles asks…

Social Security?

Which is better for the system, (1) Leave it as it is with the money drawing no interest or starting now and having each person investing part of it and drawing interest on a savings account atleast. Explain your answer.

Justin answers:

Allow workers to invest as much as possible without killing current taxpayers with transition costs. How that money is invested should be subject to restrictions: Index funds, Municipal Bond funds, and similar investment vehicles would be good choices. Allowing the selection of individual stocks would be bad. It would be important that Congress not be allowed to meddle with the system and disallow the inclusion of certain companies in the fund(s).

The reason of course, is that contrary to the promises made by the Roosevelt Administration, the Social Security System has NEVER been actuarial sound. It is in fact a giant pay-as-you-go Ponzi scheme, where current “investors” fund the payouts to those who invested earlier. The Federal Government keeps it off the books, but the unfunded obligations of Social Security run into the Trillions of dollars. The only thing backing those obligations is the ability to tax future workers. If anyone OTHER than the Federal Government tried to do this, they would be arrested as criminals.

The United States is very nearly the only nation left in the world trying to fund retirement in this way. There are other examples to look at, and compare Social Security to. At the time Social Security was created the Railroad Retirement Board had already established a retirement plan for all railroad employees, and those persons were exempted from Social Security. The railroad Pension plan invests in the private market.

The average age annuity being paid by the Railroad Retirement Board at the end of fiscal year 2005 to career rail employees was $2,165 a month, and for all retired rail employees the average was $1,659. The average age retirement benefit being paid under social security was just under $960 a month. Spouse benefits averaged $640 a month under railroad retirement compared to $465 under social security.

John asks…

The Dow went from 14,000 to 8000 from Nov 2007 to Nov 2008…and then kept going down to where it is now….?

Bush was president until January 2009. It’s at 6600 now, so down about 1500 points since Obama took office.

Lets see…down 6000 in last year of Bush, then continued to go down 1600 in the months to follow, including the first 45 days of Obama administration.

Who can blame Obama using the stats above?
Bubba, since the Dems took over Congress, Republicans set a new record for the number of filibusters. They blocked any meaningful legislation by Dems from 06-08.

Try again.

Justin answers:

The stock market is a Ponzi scheme with little oversight and even less credibility. It can easily be manipulated and suddenly it is a barometer of how the president is doing?

I don’t think so. This spiral is from all the bottom feeders selling short and trying to make some money off driving it down lower. It is all about greed and Congress should do something about it since we are all pretty much forced to invest our 401Ks in the sham. I get better odds on the roulette wheel in Vegas and that is stacked in favor of the House too.

Thomas asks…

Enron Questions….?

Can anyone answer any if not all of these questions, thx.

-What political move was the founder famous for by changing the industry?
-What is the name of the type of accounting that brought Enron to bankruptcy?
-How did this type of accounting record profits?
-How did this record keeping lead to the demise of Enron?

Justin answers:

-What political move was the founder famous for by changing the industry?
Deregulation
-What is the name of the type of accounting that brought Enron to bankruptcy?
Boosted profits and hid debts totaling over $1 billion by improperly using off-the-books partnerships (special purpose entities); manipulated the Texas power market; bribed foreign governments to win contracts abroad; manipulated California energy market (roundtripping)
-How did this type of accounting record profits?
Marking future contracts to their “estimated value”
-How did this record keeping lead to the demise of Enron?
Essentially Enron collapsed due to a lack of cash flow, once the stock began to fall and their debt was reduced to junk status, their access to capital markets ceased and they were unable to continue their ponzi scheme.

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