You Can’t Taper a Ponzi Scheme: Time to Reboot
Posted by freedomforall 9 years, 9 months ago to Economics
- Hot
- New
- Categories...
- Producer's Lounge
- Producer's Vault
- The Gulch: Live! (New)
- Ask the Gulch!
- Going Galt
- Books
- Business
- Classifieds
- Culture
- Economics
- Education
- Entertainment
- Government
- History
- Humor
- Legislation
- Movies
- News
- Philosophy
- Pics
- Politics
- Science
- Technology
- Video
- The Gulch: Best of
- The Gulch: Bugs
- The Gulch: Feature Requests
- The Gulch: Featured Producers
- The Gulch: General
- The Gulch: Introductions
- The Gulch: Local
- The Gulch: Promotions
- Marketplace
- Members
- Store
- More...
"...In this sense, the theory of the Communists may be summed up in the single sentence: Abolition of private property"
Mayer Amschel Rothschild
"Give me control of a nation's money
and I care not who makes the laws."
Ayn Rand
"... Without property rights, no other rights are possible..."
The looting of the wealth of the peoples of the earth by the bankers is nearly complete. I believe that the point of no return has been reached and economic collapse is irreversible.
http://wwx2.tripod.com/hellbent.html describes Paul Warburg's impact on the New Deal, particularly Social Security.
Warburg (aka Daddy Warbucks) was one of the two people most responsible for the Federal Reserve that was on Jekyll Island when the Federal Reserve was conceived.
As for the stock market. Ever see a stock go down after reporting better results than analysts predicted? But because they weren't even higher than the consensus estimate, they "disappoint." Just one example where I disagree that producers aren't rewarded. And besides, it isn't really the producer at all that is rewarded (other than the insiders who own stock), unless the company goes out and issues more and puts it on the market, at which point those additional shares dilute the value of the existing shares and in many instances the price of all shares is eroded.
No, the stock market is the biggest Ponzi scheme ever devised. It is only that it is sanctioned and so well hidden behind curtains that no little dog by the name of Toto is going to pull those curtains back and reveal the real inner workings.
That said, I still am invested, but worry every day when it will all come crashing down again.
The stock market over the last few years is definitely overblown. It is a bubble ready to burst. The reason that it has "gone up" is because the money in the companies hasn't inflated as quickly as the dollar itself has.
Goldman Sachs may be the vampire squid, but they aren't the first or the last. Keeping the market liquid has been used as the excuse for insiders taking massive positions exactly the opposite of those they advise retail customers to take. Market makers have used their ability to see existing stop-loss orders of customers to clean up on short term trades by forcing share prices down to execute customers' sell orders with the market maker scooping up the shares on the cheap. Then the market makers drive the price back up to earlier levels and higher by boosting ask prices repeatedly and only filling 100 shsres of any order at a price level (also using price and volume signals to other WallSt traders.) This allows the market makers to sell off the shares at profits (at returns over 1000%) before end of day reporting. This is an ancient technique and has been replaced by even harder to trace automated trading. Only the banksters benefit and everyone else is cheated. Allowing wall st a near monpoly on equity financing doesn't protect widows and orphans; it steals from everyone outside of the bankster elite.
Recommend the Wall St Jungle by Richard Ney from 1970. Many other books since then, but the age of that one demonstrates how long this sham has been allowed to continue.
Equity financing should be allowed via the internet in limited share amounts to bust the monopoly. Kickstarter could be the beginning of a new method in equity financing but don't be surprised if the SEC announces they intend to "regulate" it to protect the widows and orphans.
I would agree that some companies seem to act a bit like a Ponzi scheme. Some have cycles of taking in new investors, waiting a bit then adding additional shares for sale, which can devalue the previous shares to a new low. The vast majority do not. I would avoid investing in the ones that do.
Nearly all Americans have some of their money in the stock market. Pensions, 401K, IRA and many other saving plans invest in stocks Even the individual can invest on either side of a stock trade, if they want. Producers have the advantage. Buy low sell high. Buy when other are overly fearful, sell when others are overly greedy. Your results may vary.
"But they have often taken only their own interests and those of the wealthiest citizens into account, not those of the general public. It is up to us to educate ourselves about money and banking, and to demand a system that is accountable to the people and serves our long-term interests."