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Tuesday, August 21, 2012

SEC shuts down alleged $600 million Ponzi scheme

They took in $162 Million and paid out $160 million.
That works.
The company took in more each month than they paid out.
That works
The company helps thousands of people dig out of poverty.
That works
The company helps avg folks earn above avg incomes
That works
The company was growing leaps and bounds and paid out $160 million dollars last month to people who are putting their kids through college, paying bills, buying new things at the malls.. paying their taxes... and helping others to do the same.
That doesn't work in the SEC eyes.
Note to those of you comparing Social Security to a Ponzi scheme: The reason Ponzi schemes are dangerous and eventually fail is because new investors dry up. Social Security, by contrast, always has a large pool of workers paying in, and those work cannot suddenly stop paying or demand their payout in full the way Ponzi investors can. What's more, when Social Security runs low (as it is now), the government can take measures to increase the fund, such as raising the cap on the level of taxable income. Yes, Social Security has its problems, but it is not a Ponzi scheme.

So when are they going after the Federal Reserve Bank, the biggest ponzi of all?

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