Amundi warns that parts of private equity market resemble ‘Ponzi schemes’
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Re: Amundi warns that parts of private equity market resemble ‘Ponzi schemes’
#2sometimes i feel the whole market resembles ponzi. things getting expensive because there is a promise of price rising and more people getting into the market.
Re: Amundi warns that parts of private equity market resemble ‘Ponzi schemes’
#3sometimes i feel the whole market resembles ponzi. things getting expensive because there is a promise of price rising and more people getting into the market.
In times of great exuberance yes, but eventually the markets do revert back and generally the broad market has been a good source of consistent, reasonable returns(6-9%). One should use their own common sense when evaluating risk and the major reason to get into a market should not be simply because others are doing it.
Re: Amundi warns that parts of private equity market resemble ‘Ponzi schemes’
#4Is “everything a Ponzi scheme” unless the entity actually can create “value” greater than the money put into it?
Is everything that exists in economies within the bounds of national economics and central banks a Ponzi scheme? A reshuffling of money within the closed economic system?
Re: Amundi warns that parts of private equity market resemble ‘Ponzi schemes’
#5Is “everything a Ponzi scheme” unless the entity actually can create “value” greater than the money put into it? Is everything that exists in economies within the bounds of national economics and central banks a Ponzi scheme? A reshuffling of money within the closed economic system?
No? But maybe a qualified No that varies over time.
https://www.bbc.com/news/magazine-26680993
Re: Amundi warns that parts of private equity market resemble ‘Ponzi schemes’
#6sometimes i feel the whole market resembles ponzi. things getting expensive because there is a promise of price rising and more people getting into the market.
In times of great exuberance yes, but eventually the markets do revert back and generally the broad market has been a good source of consistent, reasonable returns(6-9%). One should use their own common sense when evaluating risk and the major reason to get into a market should not be simply because others are doing it.
Surely others doing it is a perfect reason to do it. They pile in, market surges, you hop in and get lifted, and cash out before they do. Leaving aside the critical timing of that last step, it seems obviously right (for a short-term purely economics view)
Re: Amundi warns that parts of private equity market resemble ‘Ponzi schemes’
#7Earlier quoted context omitted.
In times of great exuberance yes, but eventually the markets do revert back and generally the broad market has been a good source of consistent, reasonable returns(6-9%). One should use their own common sense when evaluating risk and the major reason to get into a market should not be simply because others are doing it.
Surely others doing it is a perfect reason to do it. They pile in, market surges, you hop in and get lifted, and cash out before they do. Leaving aside the critical timing of that last step, it seems obviously right (for a short-term purely economics view)
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Re: Amundi warns that parts of private equity market resemble ‘Ponzi schemes’
#8Earlier quoted context omitted.
In times of great exuberance yes, but eventually the markets do revert back and generally the broad market has been a good source of consistent, reasonable returns(6-9%). One should use their own common sense when evaluating risk and the major reason to get into a market should not be simply because others are doing it.
Surely others doing it is a perfect reason to do it. They pile in, market surges, you hop in and get lifted, and cash out before they do. Leaving aside the critical timing of that last step, it seems obviously right (for a short-term purely economics view)
And that's how you get less informed private persons (ie. the public, ie. the "economy") over-leveraged on real-estate or junky assets holding the bag.
Re: Amundi warns that parts of private equity market resemble ‘Ponzi schemes’
#9Is “everything a Ponzi scheme” unless the entity actually can create “value” greater than the money put into it? Is everything that exists in economies within the bounds of national economics and central banks a Ponzi scheme? A reshuffling of money within the closed economic system?
More like everything can become a bubble. I think many have started using "ponzi scheme" to reference bubbles that appear to be crafted or manipulated by bad actors.
Re: Amundi warns that parts of private equity market resemble ‘Ponzi schemes’
#10sometimes i feel the whole market resembles ponzi. things getting expensive because there is a promise of price rising and more people getting into the market.
I'm an armchair economist, hello! Are you one as well? Nice! We armchair economists should look out for each other, who else is going to do it ya know? ;-) I'd pour you some wine or any beverage of your choice if I'd see you in IRL.
In any case.
I disagree with your point. Companies that have solid fundamentals and fairly steady dividend payments do not feel like a ponzi at all. The deal is simple: you get a share, they give you a dividend. If management changes that, you can always sell the share.
Dividend payments is one of the best tools to keep a stock market (somewhat) honest.