A Ponzi scheme is a form of pyramid scheme in which earlier investors are paid with the money of later investors rather than from real profits.Most of the profits on wall street are not real profits after taking into account money printing inflation , but most profits are from money printing over the last three decades. http://www.webofdebt.com/articles/ponzi.php
Omigod, this has to be one of the silliest things I have ever read... Still, good for a laugh, I guess.
Buy new shares from old investors ,on valuations of performance over future years , example dotcom bubble shares ( face book) .......rob the funds AUM by selling to new investors (AUM).It is nothing more than a grand Ponzi scheme based on future valuations and future values of prices. The maddoff analysts and investment bankers ramping up share prices .The only thing keeping these markets high is the money printing by central banks.
What are the true investment returns after fees , commissions , by adding cost of losses of bankrupt companies from Dow and S and P returns ?If money printing was not allowed , if we had the gold stand in place , What would be inflation adjusted returns ?
"Omigod, this has to be one of the silliest things I have ever read... Still, good for a laugh, I guess." "The only thing keeping these markets high is the money printing by central banks. " what is the difficulty in understanding this sentence? the Zimbabwe stock market has made large moves at various times. long term stock profits are locked up in the US because investors don't want to pay taxes on profits which are nonexistent after inflation adjustments. it is time for you to get off your high horse and to stop personalizing your comments with ridiculous retorts. people might start to deem your remarks as "silly", starting with me. "just the facts, mam." understand?
Right, so I am sorta kinda happy to discuss this separately, if you insist (even though it's a very vague statement). However, what does this have to do with the patently silly content of the linked article? And pls do tell me what exactly I am personalizing.
+1 OP is right, the average, not dividing paying stock is basicly based on the rule of bigger fool. Several times there is absolutely no connection between the company's performance and its stock's price. NFLX or GRPN anyone? Eventually fundamentals do matter, but it might take years before reality finally sets in, and until then, it is the bigger fool's game. But that doesn't mean you can not make money either way, you just have to know that the singing might stop at any time and you could be the one not having a chair (getting stuck being long)...
+1 Gold price 1972 $60 Dow Jones 1,000 (before deductions for all the losers , companies in liquidation , bankruptcies and massaged dow jones with only the top performers ) S and p 1972 , 118 Gold appreciation 27 fold Dow Jones appreciation 1972 ,14 fold S and p appreciation 12 fold since 1972 All these rises in Wall street Ponzi system (without losses of investors)