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Wall Street Is the Definition of a Ponzi Scheme (Literally)

The Simple Truth
$34 trillion of stock value = $0 in real money
Investors want money, not value. 
This book came out back in 2018, and it confirmed what I thought for years. =
The Ponzi Factor is the most comprehensive research ever compiled on the negative-sum nature of capital gains (non-dividend stocks). The book is not a perspective or an opinion. It is a proof that is based on definition, logic, and it is supported by observable facts and history.
The simple truth is profits from buying and selling stocks come from other investors who are buying and selling stocks. When someone buys low and sells high, another sucker is also buying high and needs to sell for even higher. Companies like Google, Amazon, and Tesla never pay their shareholders. Their investors profits are dependent on the inflow of money from new investors, which by definition, is how a Ponzi scheme works.
Next, if you’re feeling cheeky, you might ask, “Then where do the profits come from? If I buy Google at $20 and sell it for $220, where did that $200 come from?” The answer is it came from other investors who were willing to buy the stock. As Tan Liu puts it,
This is actually a negative-sum situation because the underlying company isn’t involved in the transaction. The investors are just cannibalizing each other for profits, and there are fees attached to every transaction. From= https://theponzifactor.com/ 
Again, don’t take my word for it. The Securities and Exchange Commission (SEC*) defines a Ponzi scheme as “[a]n investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors.”
The stock market is a Ponzi scheme. A Ponzi scheme is the stock market. * https://www.sec.gov/fast-answers/answersponzihtm.html 

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IrisP632884 posted..

The simple truth is profits from buying and selling stocks come from other investors who are buying and selling stocks. When someone buys low and sells high, another sucker is also buying high and needs to sell for even higher. Companies like Google, Amazon, and Tesla never pay their shareholders. Their investors profits are dependent on the inflow of money from new investors, which by definition, is how a Ponzi scheme works.

=========================================================

You show you do not understand how the stock market works. FYI Its not a Ponzi scheme

When you buy a stock you are buying part of that company...you get to vote on issues.

Then a stock is sold there is a willing seller and willing buyer.

I am happy that I have been investing in the stock market for over 55 years.
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Re: Wall Street Is the Definition of a Ponzi Scheme (Literally)
81 Views Message 4 of 8
‎03-14-2020 09:21 AM
IrisP632884 posted..

The simple truth is profits from buying and selling stocks come from other investors who are buying and selling stocks. When someone buys low and sells high, another sucker is also buying high and needs to sell for even higher. Companies like Google, Amazon, and Tesla never pay their shareholders. Their investors profits are dependent on the inflow of money from new investors, which by definition, is how a Ponzi scheme works.

=====================================================

You show you do not understand how the stock market works. FYI Its not a Ponzi scheme

When you buy a stock you are buying part of that company...you get to vote on issues.

Then a stock is sold there is a willing seller and willing buyer.

Pon·zi scheme
/ˈpänzē ˌskēm/
noun
a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.
"a classic Ponzi scheme built on treachery and lies"

==============================================
nonexistent enterprise...I would hope that everyone can understand that is not what the stock market is.

There have been people that sell stock in nonexistent enterprise. They are crooks and are not members of any stock exchange.
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@KidBoy2 wrote:
Re: Wall Street Is the Definition of a Ponzi Scheme (Literally)
81 Views Message 4 of 8
‎03-14-2020 09:21 AM
IrisP632884 posted..

The simple truth is profits from buying and selling stocks come from other investors who are buying and selling stocks. When someone buys low and sells high, another sucker is also buying high and needs to sell for even higher. Companies like Google, Amazon, and Tesla never pay their shareholders. Their investors profits are dependent on the inflow of money from new investors, which by definition, is how a Ponzi scheme works.

=====================================================

You show you do not understand how the stock market works. FYI Its not a Ponzi scheme

When you buy a stock you are buying part of that company...you get to vote on issues.

Then a stock is sold there is a willing seller and willing buyer.

Pon·zi scheme
/ˈpänzē ˌskēm/
noun
a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.
"a classic Ponzi scheme built on treachery and lies"

==============================================
nonexistent enterprise...I would hope that everyone can understand that is not what the stock market is.

There have been people that sell stock in nonexistent enterprise. They are crooks and are not members of any stock exchange.

Denial?

 


Man learns from history that man learns nothing from history.
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@KidBoy2 wrote:
IrisP632884 posted..

The simple truth is profits from buying and selling stocks come from other investors who are buying and selling stocks. When someone buys low and sells high, another sucker is also buying high and needs to sell for even higher. Companies like Google, Amazon, and Tesla never pay their shareholders. Their investors profits are dependent on the inflow of money from new investors, which by definition, is how a Ponzi scheme works.

=========================================================

You show you do not understand how the stock market works. FYI Its not a Ponzi scheme

When you buy a stock you are buying part of that company...you get to vote on issues.

Then a stock is sold there is a willing seller and willing buyer.

I am happy that I have been investing in the stock market for over 55 years.

Well, it's tiring educating trump supporters but here ya' go (again):

 

From WIKI:     Ponzi scheme (/ˈpɒnzi/Italian: [ˈpontsi]; also a Ponzi game)[1] is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors.[2] 


Man learns from history that man learns nothing from history.
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@ChasKy53 wrote:

@KidBoy2 wrote:
IrisP632884 posted..

The simple truth is profits from buying and selling stocks come from other investors who are buying and selling stocks. When someone buys low and sells high, another sucker is also buying high and needs to sell for even higher. Companies like Google, Amazon, and Tesla never pay their shareholders. Their investors profits are dependent on the inflow of money from new investors, which by definition, is how a Ponzi scheme works.

=========================================================

You show you do not understand how the stock market works. FYI Its not a Ponzi scheme

When you buy a stock you are buying part of that company...you get to vote on issues.

Then a stock is sold there is a willing seller and willing buyer.

I am happy that I have been investing in the stock market for over 55 years.

Well, it's tiring educating trump supporters but here ya' go (again):

 

From WIKI:     Ponzi scheme (/ˈpɒnzi/Italian: [ˈpontsi]; also a Ponzi game)[1] is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors.[2] 


Like Social Security.

 

You are getting sleepy.
Honored Social Butterfly

Your link...Oops! We can't find this file

. The Securities and Exchange Commission (SEC*) defines a Ponzi scheme as “[a]n investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors.”

And that s not the stock market.

FYI... a Ponzi scheme ends when the investors end up with nothing.




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@KidBoy2 wrote:
Your link...Oops! We can't find this file

. The Securities and Exchange Commission (SEC*) defines a Ponzi scheme as “[a]n investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors.”

And that s not the stock market.

FYI... a Ponzi scheme ends when the investors end up with nothing.


Well, it gets tiring educating trump supporters but here ya' go:

 

From WIKI:     Ponzi scheme (/ˈpɒnzi/Italian: [ˈpontsi]; also a Ponzi game)[1] is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors.[2] 


Man learns from history that man learns nothing from history.
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@ChasKy53 wrote:

@KidBoy2 wrote:
Your link...Oops! We can't find this file

. The Securities and Exchange Commission (SEC*) defines a Ponzi scheme as “[a]n investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors.”

And that s not the stock market.

FYI... a Ponzi scheme ends when the investors end up with nothing.


Well, it gets tiring educating trump supporters but here ya' go:

 

From WIKI:     Ponzi scheme (/ˈpɒnzi/Italian: [ˈpontsi]; also a Ponzi game)[1] is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors.[2] 


Think your definition left out one small point - in a Ponzi scheme there are really NO profits - investors are paid from others who buy into the scheme -

 

The market has worked for me - even now.

I bought my (personal) utility stocks through the years as DRIP investments and now receive dividend that pay for my annual use of those utilities and then some.   The great thing about some of them is that the dividends are not actually based on profits; they are based on the number of shares which I own.  So in a "down" market I actually make money by being able to buy more shares because the share price is lower than if the share price is higher.

Capeesh?

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@GailL1 wrote:

@ChasKy53 wrote:

@KidBoy2 wrote:
Your link...Oops! We can't find this file

. The Securities and Exchange Commission (SEC*) defines a Ponzi scheme as “[a]n investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors.”

And that s not the stock market.

FYI... a Ponzi scheme ends when the investors end up with nothing.


Well, it gets tiring educating trump supporters but here ya' go:

 

From WIKI:     Ponzi scheme (/ˈpɒnzi/Italian: [ˈpontsi]; also a Ponzi game)[1] is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors.[2] 


Think your definition left out one small point - in a Ponzi scheme there are really NO profits - investors are paid from others who buy into the scheme -

 

The market has worked for me - even now.

I bought my (personal) utility stocks through the years as DRIP investments and now receive dividend that pay for my annual use of those utilities and then some.   The great thing about some of them is that the dividends are not actually based on profits; they are based on the number of shares which I own.  So in a "down" market I actually make money by being able to buy more shares because the share price is lower than if the share price is higher.

Capeesh?


Your argument is with WIKI, not with me, maybe you should contact them with your vast knowledge.


Man learns from history that man learns nothing from history.
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@ChasKy53 wrote:

Your argument is with WIKI, not with me, maybe you should contact them with your vast knowledge.

I was going to "EDIT" it myself since I have done others but I noticed that you didn't copy and print here the whole definition:

 

You printed this part:

A Ponzi scheme (/ˈpɒnzi/, Italian: [ˈpontsi]; also a Ponzi game)[1] is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors.[2]

THIS IS THE REST OF THE PARAGRAPH:

The scheme leads victims to believe that profits are coming from product sales or other means, and they remain unaware that other investors are the source of funds. A Ponzi scheme can maintain the illusion of a sustainable business as long as new investors contribute new funds, and as long as most of the investors do not demand full repayment and still believe in the non-existent assets they are purported to own.

 

 

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