Friday, 15 August 2014

About Ponzi Scam

I first fell victim to a Gigantic ponzi scam called the stock market, then the unit trusts. Some of the exotic ponzis I've invested are 12 daily pro. I have never ever touch MLM or any product that based on your ability to resell the product for higher price or to pull in more members.

12 daily pro is so powerful a scam. You place your money, 12k usd in the system and in 12 days, you receive 12 percent for doing absolutely nothing and thats ultra high return for doing absolutely nothing! Its introduced by a very dear friend, who must had made some upline money intriducing me to the system. Now with the money locked in, you are at the mercy of the ponzi for the 12 days. You cannot withdraw the money. Needless to say, the system collapsed eventually and gone are the few thousands.

Now, what else gives you 12% returns? Dolphin Capital? IPIN Global secured investment strategy? Geneva Gold?

What is so special about this 12% that people are willing to let go their money to put into something that they absolutely have no control over? Ever since the 12 daily pro scam, I've stayed away from anything that promises 12%.

I've received my very first advice on property investment - only invest where you can get a mortgage. It made perfect sense. I was not savvy enough to ask why nor do I understand it initially. Over the years, I've gone against the advice and bought some property without bank mortgage and what I dumb dumb I've been feeling ever since I parted with my money. Thats money lost forever... depending on the whims and fancy of the ponzi operator. I did say the stock market is a ponzi as it is a "willing buyer, willing seller" market. Would banks lend you money to buy stocks? Think about it.

Why do I say you need a mortgage... The bank is a cautious creature who have to protect its own interest. The banks are lending against the value of the asset and not lending to you as a term loan. The property must have sufficient value when a bank lends you the money. Without the bank backing the mortgage, it would be a "willing buyer willing seller" system. You may not get the price you want next time you are selling. Bank mortgage helps you create a stop loss.

In an unregulated market where financial services is not so advance, take care when investing. If you think the law is going to protect you, think again. How are you going to raise the money to fight the case, in their court, taking several years to recover some tens of thousands. Also, think about who is going into the deal with you. If your fellow investors are the aunties and uncles who had just withdrew their CPF money, better stay out and advice them to stay out too.

I've met numerous aunties who have invested as a "try try"!!!! what? try try? Lost money take it as lessons learnt.

With that attitude, Ponzis are here to stay.

No comments:

Post a Comment