Tag: Ponzi scheme

The United States Of Ponzi

Nouriel Roubini pulls no punches:

Americans lived in a “Made-off” and Ponzi bubble economy for a decade or even longer. Madoff is the mirror of the American economy and of its over-leveraged agents: a house of cards of leverage over leverage by households, financial firms and corporations that has now collapsed in a heap.

When you put zero down on your home, and you thus have no equity in your home, your leverage is literally infinite and you are playing a Ponzi game.

And the bank that lent you, with zero down, a NINJA (no income, no jobs and assets) liar loan that was interest-only for a while, with negative amortization and an initial teaser rate, was also playing a Ponzi game.

Yep – it’s all that evil Wall Street banker’s fault. You twits!

BTW: there’s more Ponzi here.

Another Ponzi scheme bites the dust

From the Commodities Futures Trading Commission:

Federal Court Order Freezes Assets of Illinois Commodity Pool Operator Brookshire Raw Materials Management, LLC and its Canadian Principals Based on CFTC Charges of Misappropriating More Than $4.6 Million in a Ponzi Scheme

The U.S. Commodity Futures Trading Commission (CFTC) announced today that it obtained a federal court order freezing the assets and prohibiting the destruction of documents of a Barrington, Illinois commodity pool operator, Brookshire Raw Materials Management, LLC (BRM), and its principals John M. Marshall and Stephen Z. Adams, Brookshire Raw Materials Group, Inc. (BRMG) and Brookshire and Company, Ltd. (BCL), all of Toronto, Ontario, Canada…

As alleged in the CFTC’s complaint, between September 2006 and December 2008, Marshall, Adams, and BRM accepted millions of dollars from customers for investment in a commodity pool known as the Trust and operated as a Ponzi scheme. The Trust is governed by a Private Placement Memorandum (PPM), which, among other things, states that each fund in the commodity pool will invest customer proceeds in a portfolio of commodity futures and forward contracts designed to approximately replicate the investment methodology of corresponding indices developed and managed by BRMG. However, as alleged, Marshall and Adams, as agents and officers of BRM, BRMG, and BCL withdrew more than $5 million from the Trust account and wired those funds to bank accounts in Canada, mostly in the care of Marshall.

Five million bucks isn’t a pimple on an elephant’s arse nowadays, but a million here, a million there and pretty soon you’re talking about billions. Or is that trillions?

Stay tuned. Enjoy the fun.

A ponzi a day keeps the doctor away

The Madoff scandal put the phrase ‘ponzi scheme’ back on the tips of everyone’s tongues, and the concept of stealing/losing/burning gargantuan sums of money in everyone’s mind. Since that time we’ve seen…

  • A Florida-based money manager who travels in ‘elite’ circles disappear, leaving only a note and a Subaru – monies in the sum of an estimated $350 million vanished along with him;
  • A hedge fund manager jump out of a moving plane (that seconds before he was piloting) to avoid capture for possible theft of his clients’ money – he’s busted after ditching his second internal combustion powered machine, a bright red motorcycle;
  • And now a guy supposedly syndicating ‘bridge loans’ is busted for mail fraud – his name is Cosmo and his company is Agape World (which sounds more like a fruit stand you’d find off US-1 in Homestead).
  • Who cares about the fraud, the deceit, the disappearing millions billions trillions. If anyone was really concerned about that, all they’d have to do is check out the latest bailout plan. Or better yet, take a gander at their annual Social Security statement. I mean the [taxpayer] money given to banks, to keep them from falling face first into some supposed abyss, is being managed prudently as ever – they’re buying $50 million corporate jets with it.

    It’s all good. So sit back, relax, and enjoy the show.

    Fly fishing is the world’s biggest Ponzi scheme

    Diehard fly-fishers already know this

    First, you mortgage your life for a collection of very expensive gear. Before you’ve gotten any return on your investment, you get all your friends involved and they buy sloughs of pricey rods and reels. They soon find the sport is a lot more difficult than it looks, so to soothe their sore shoulders (not from casting – it’s the chip on said shoulder causing the pain) they lure yet more people to fly fishing. In turn more high-priced graphite and aluminum wonders exit the shop.

    Along the way millions of leaders are broken, billions of indicators and egg weights come loose, and trillions of flies are snagged on overhanging tree branches and mangrove roots.  If you’re lucky, someone in your long line of friends wants to get involved and happens to have more money than you – they buy all the gear you can’t afford (and then you just borrow it).

    To hell with all the rhetoric about getting back to nature, having time to reflect, converging with zen states of being – fly fishing is the most aggravating thing a human being can do. The only way anyone involved in the insanity ever gets a return on their investment is…uh…well…they won’t. Never will. A slight consolation is that if you take really, really good care of your gear you might be able to pass it on to your progeny.

    We are all suckers.

    Anyone reading this who actually fly fishes more than once a decade is now concurring wholeheartedly. And as irony would have it, some folks intimately related to Madoff Investments own part of Abel reels – Singlebarbed and Moldy Chum have more.

    What I really take offense to is the notion of Madoff Investments being history’s biggest Ponzi scheme. It’s fly fishing, dammit, and I am in possession of shit loads of AMEX statements to prove it.

    Now where’s my bailout?