Guest guest Posted January 28, 1999 Report Share Posted January 28, 1999 > Gauranga das wrote: > > 99 is what many experts in many different fields are saying. ITs amasing how > > the usa economy is still being proped up. Everyone knows that the bubble is > > going to burst and anyone with any brain substance at all will get out of > > the markets. If anything, they should be looking to sell short the S&P 500 > > futures market. . Bad idea #1. When buying a securitiy, one has a limited potential downside and unlimited potential upside. When selling short, one has the exact opposite: LIMITED potential gain and UNLIMITED potential loss. I'm normally not emotional enough to capitalize, but I'll do it here because this is such a bad idea. I repeat: LIMITED potential gain and UNLIMITED potential loss. > > Program A > > Minimum Investment US$ 10,000. and multiples of 10 K ie 20K, 30K etcI > > Returns 10 % a month. > > Duration of contract is for 10 Months. > > Contract Agreement are given. > > Receipt of Funds This has all the marks of a scam -- this is guaranteed by the law of efficient markets. It is well known that the maximum return that one can achieve (in dollars) without taking on any risk is roughly 5.00% per year -- the Fed funds rate. If one is willing to take on substantial risk on a fixed-income (bond) investment, one might get as high as 20% per yet. The above, though, promises over 100% a year without any risk. If this were actually possible, the law of efficient markets guarantees that so many people would rush in to purchase this investment product that demand would greatly exceed supply. At that point, the base price on the product would shoot up -- rather than being able to provide $1000 monthly income on a $10K investment, investors would be in such a rush to buy it that the base price would shoot up to roughly $240K (and would still only produce $1000 monthly income). This would then bring the product in line with the Fed Funds rate, which is all you can get without taking on risk. Nevertheless, we don't see this product offered at $240K , we see it offered at $10K. Therefore, we can conclude that it will not live up to its claims. > > Because I know I can deliver these types of returns, I put them into writing > > in the agreement contact. Contracts can always be reneged in a number of ways. Even if a contract is made within the US, it can be broken by Chapter 11 bankruptcy protection. Further, contracts across countries are practically unenforceable -- I don't think that any country will agree to extradite someone based on failure to uphold a financial contract. Therefore, the best plan is to stay away from such schemes (or should I say, "scams"). Regards, Vijay Quote Link to comment Share on other sites More sharing options...
Guest guest Posted February 1, 1999 Report Share Posted February 1, 1999 Dear Vijaya, Its obvious from you email, that you have very limited experience in Commercial banking and certain areas of investment programs offered by major institutions. I don't wish to pursue this with you since, even though I have all the documentation to prove this, you would most likely use another lame reason as like the one you used in your comments about everyone doing this. As I have mentioned earlier, this message got on the conference earlier. It was not meant for public knowledge, ever. I was offering it to some of my very close devotee friends who know me and know that I don't get involved in scams and I would never offer such to anyone. That is not my nature. Therefore I don't expect you to believe me, I was not trying to convince anyone, especially 99% of people who don't understand or have any experience in this field, Like yourself for example.Just because you can not rationalise this within your own experiece in investment, Why do you label it a scam ? So rather than just making blind statements of things you don't understand and try to rationalise your responses, please be a little respectful. If you want clarity why not ask questions rathing than trashing things. This is a good approach to have in dealing with anything in life. In regards to my statement of " if anything people should sell the S&P market." I think again you have mis understood my statement. Have you ever traded the futures market ? What kind of systems did you use ? Unless you have a lot of experience in trading, again please be careful. I did not say that one should jump in immediately and sell the market, did I ? If you like you can discuss this with me as a gentleman and I will explain things further. So my advice is please don't jump to conclusion. We all have a lot to learn, and we all don;t know everything that there is to know about banking and investments. We all for the most part have limited experiece. I don;t know what you have spent or learnt on your offshore knowledge of investments and banking, but I would be interested to find out and discuss this with you. Hoping this greets you well. Sincerely garuanga dasa Quote Link to comment Share on other sites More sharing options...
Guest guest Posted February 1, 1999 Report Share Posted February 1, 1999 Dear Vijaya, Its obvious from you email, that you have very limited experience in Commercial banking and certain areas of investment programs offered by major institutions. I don't wish to pursue this with you since, even though I have all the documentation to prove this, you would most likely use another lame reason as like the one you used in your comments about everyone doing this. As I have mentioned earlier, this message got on the conference earlier. It was not meant for public knowledge, ever. I was offering it to some of my very close devotee friends who know me and know that I don't get involved in scams and I would never offer such to anyone. That is not my nature. Therefore I don't expect you to believe me, I was not trying to convince anyone, especially 99% of people who don't understand or have any experience in this field, Like yourself for example.Just because you can not rationalise this within your own experiece in investment, Why do you label it a scam ? So rather than just making blind statements of things you don't understand and try to rationalise your responses, please be a little respectful. If you want clarity why not ask questions rathing than trashing things. This is a good approach to have in dealing with anything in life. In regards to my statement of " if anything people should sell the S&P market." I think again you have mis understood my statement. Have you ever traded the futures market ? What kind of systems did you use ? Unless you have a lot of experience in trading, again please be careful. I did not say that one should jump in immediately and sell the market, did I ? If you like you can discuss this with me as a gentleman and I will explain things further. So my advice is please don't jump to conclusion. We all have a lot to learn, and we all don;t know everything that there is to know about banking and investments. We all for the most part have limited experiece. I don;t know what you have spent or learnt on your offshore knowledge of investments and banking, but I would be interested to find out and discuss this with you. Hoping this greets you well. Sincerely garuanga dasa Quote Link to comment Share on other sites More sharing options...
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