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Chinese police swoop on $7.6 Billion ‘record-breaking online Ponzi scheme’

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Re: Chinese police swoop on $7.6 Billion ‘record-breaking online Ponzi scheme’

#11

Earlier quoted context omitted.

You can't run a ponzi scheme without records the accounting skills needed to run one successfully are probably greater than the ones needed to manage an actual investment fund.

Actually, you don't need anything more than basic bookkeeping skills. What surprises me is that it is an online ponzi scheme and yet they maintain records on paper. This does not add up.

Again you don't run a ponzi scheme on that scale using "basic bookkeeping skills", you need to be a heck of an accountant to make sure that you have enough cash flow to pay out returns and make enough legitimate investments and constantly keep the money moving to make it appear that it's still there.

If you just base you ponzi scheme on I take 50% of every new payment and give out the previous 50% to my previous investments it won't really drag on for longer than couple of months, not to mention that you actually need to generate allot of financial traffic to both draw people in initially and keep the authorities of your back.

The reason ponzi schemes tend to snowball like this is because they run exceptionally well many of them have actually made some decent return on their investments (not anywhere near the actual percentage needed to balance out the "management costs" ofc) a good ponzi scheme is almost indistinguishable from a legitimate investment fund, they'll make tons of trades, constantly move money around and keep large cash flows on hand to make it look like all the money is still there, make regular payouts, and "silence" any panicked investor who wants to cash out early.

Re: Chinese police swoop on $7.6 Billion ‘record-breaking online Ponzi scheme’

#13

Earlier quoted context omitted.

You can't run a ponzi scheme without records the accounting skills needed to run one successfully are probably greater than the ones needed to manage an actual investment fund.

Actually, you don't need anything more than basic bookkeeping skills. What surprises me is that it is an online ponzi scheme and yet they maintain records on paper. This does not add up.

The Chinese government is not a great adversary to have, though.

Re: Chinese police swoop on $7.6 Billion ‘record-breaking online Ponzi scheme’

#16
post #5

That's a horrible site on mobile... it tries to do some weird app loading thing, wants to consume additional local storage while a percentage counter slowly climbs one percent per second with no content visible. Better link: http://www.dailymail.co.uk/wires/ap/article-3425972/China-co...

First time I've ever seen Daily Mail cited as 'better link'

Re: Chinese police swoop on $7.6 Billion ‘record-breaking online Ponzi scheme’

#17
The China's own ponzi economy will be mirroring the collapse of Ezubo .

"So in two short decades, China has erected a monumental Ponzi economy that is economically rotten to the core. It has 1.5 billion tons of steel capacity, but “sell-through” demand of less than half that amount.... The same is true for its cement industry, ship-building, solar and aluminum industries—to say nothing of 70 million empty luxury apartments and vast stretches of over-built highways, fast rail, airports, shopping mails and new cities.

In short, the flip-side of the China’s giant credit bubble is the most massive malinvesment of real economic resources—-labor, raw materials and capital goods—ever known"

China’s Monumental Ponzi: Here’s How It Unravels http://davidstockmanscontracorner.com/chinas-monumental-ponz...

Re: Chinese police swoop on $7.6 Billion ‘record-breaking online Ponzi scheme’

#18

Earlier quoted context omitted.

Actually, you don't need anything more than basic bookkeeping skills. What surprises me is that it is an online ponzi scheme and yet they maintain records on paper. This does not add up.

Again you don't run a ponzi scheme on that scale using "basic bookkeeping skills", you need to be a heck of an accountant to make sure that you have enough cash flow to pay out returns and make enough legitimate investments and constantly keep the money moving to make it appear that it's still there. If you just base you ponzi scheme on I take 50% of every new payment and give out the previous 50% to my previous inve…

Those are usually not as hard as they sound.

Re: Chinese police swoop on $7.6 Billion ‘record-breaking online Ponzi scheme’

#19

The China's own ponzi economy will be mirroring the collapse of Ezubo . "So in two short decades, China has erected a monumental Ponzi economy that is economically rotten to the core. It has 1.5 billion tons of steel capacity, but “sell-through” demand of less than half that amount.... The same is true for its cement industry, ship-building, solar and aluminum industries—to say nothing of 70 million empty luxury apar…

Anything for more GDP growth! I wonder if the insane over-provisioning is a genius scheme to monopolise worldwide manufacturing for a century (even at massive cost to their population) or just a drive to keep up unsustainable growth statistics. Either way the game will be up eventually...
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