|Wealth Building Information|
You Can`t Cheat An Honest Man
Author: James Walsh
In 1903 Charles Ponzi arrived in the USA with the aim of becoming as wealthy as Rockefeller. His modus operandi was based on the principle of robbing Peter to Pay Paul.
James Walsh, in his informative book, You Can`t Cheat An Honest Man: How Ponzi Schemes and Pyramid Frauds Work..and Why They`re More Common Than Ever, traces the origins of the Ponzi Scheme, and explores how and why the scheme works with its different modern day variations.
The first part of the book narrates how, after spending some time in prison for cheque forgery, Ponzi found a creative way to shaft people, that was even legal and possibly sound.
What Ponzi would do was to take advantage of the disparities in the foreign exchange rates pertaining to the postal currency of International Reply coupons. If these coupons could be purchased in countries where they were still hit hard by the after-effects of World War I, he could then redeem them for stamps or cash in the USA, where there value would be as much as 50% higher. Presto! He was onto a brilliant scheme, however, he needed money to expand his enterprise.
In order to raise the needed cash, he promised investors that he would pay them high rates of interest with the profits from his scheme. As is the case today, people were gullible and greedy, and Ponzi had little difficulty in attracting huge sums of money.
However, Ponzi found it difficult to keep meeting his obligations of paying his investors. He resorted to using fresh money to keep his original investors satisfied. And thus began the Ponzi Scheme, that is alive and well today with multiple variations on the original theme.
One such variation is the very popular pyramid sales scheme, where individuals are seduced to become part of a plan for the sale or distribution of goods, services or other property, and wherein they acquire the opportunity to receive monetary compensation, which has little to do with the volume or quantity of goods or services sold but rather on the number of additional persons that could be recruited to join the plan.
The author devotes considerable print to these schemes, as well as making reference to the abundance of jurisprudence that defines and outlaws these plans.
Anyone wishing to protect himself or herself, would do well in thoroughly reading the concluding chapter. It is here where we are given some very sound advice- to be wary of get rich schemes, watch out for deals that offer high yields, if you do not understand the investment, stay away from it, seek professional advice before investing in anything and check out who are the promoters.
Walsh has a sharp eye as to important details, and with his wide use of informative examples, readers receive a comprehensive understanding as to just how wide spread these fraudulent schemes are and how not to be seduced by them.
Norm Goldman is Editor of the book reviewing site, http://www.bookpleasures.com. The site comprises over twenty five international prestigious reviewers who review all genre. Norm is always open to receiving book review inquiries.
Rich or Poor - Get the Knowledge
Most people work hard all their lives only to "retire" poor then try to live off meagre savings or a small (rapidly disappearing) Government pension. They are forced to live out their twilight years struggling with constant money problems. Many of them have to buy only the cheapest food and are unable to enjoy the little pleasures of life like going to an occasional movie, eating out or taking short trips. They have to watch every cent they spend.
What is Your Creative Retirement Plan?
The idle are a peculiar kind of dead that cannot be buried." Oriental proverb
Financial Freedom, Is It Only A Dream or Just Steps Away?
Almost all of us go to work everyday and do the same routine over and over again. We work so hard until we caught up in the routines for years. With the salary that we earn every day, we try to pay all of our bills. We always expect to get a higher salary, getting promotion or our business running better so we can earn more money. But we do not realize that when we get more income, we also have spent more money on our needs. After we work for two, five, or even ten years we just realize that we have been in the rat race of our financial troubles.
Who Will Become Wealthy in the Information Age?
As you know, we're now well and truly in theInformation Age. It began about 10 years ago. In fact,many economists say it began in 1989, with the Fall ofthe Berlin Wall (and the start of the World Wide Web).
Online Retirement Opportunity: Freelance Copywriting
For most of us, the idea of retiring simply on our pension is not a happy prospect.
Increase Your Business with a New Old Method: Vaastu Shastra
Whether an established conglomerate or a fledgling company, a business in the red or black, from home or from office ? everyone loves a helping hand. If the tooth fairy existed life would be much simpler, but since she hasn't paid us a visit in a long time Vaastu Shastra might be a good alternate.
Turn That Fixed Rate Mortgage Into A Goldmine
When you purchased your home, you most likely got a fixed interest rate mortgage with a 15 or 30 year term. These are the most popular mortgages in the industry. Even in the summer of 2004, when the interest-only or simple interest mortgage loans became popular, the average American stuck to the fixed rate. You see, the fixed rate offers security to conservative people, and the average American home buyer and home owner is a very conservative person.
Its High Time for Lifetime Savings Accounts
I'm constantly reading articles on the internet and in financial magazines in which so-called financial planning experts express perplexity as to why about 30% of employees do not participate in their employers' 401(k) plans. These writers don't seem to have clue. Well, allow me to enlighten them a bit. For the most part, it's because of the restrictions imposed on the employees' money.
Trustees: Who Can You Trust?
Early in my legal career I represented two young women in their early 20s.
Easy Ways to Save $1,000
Vacation season is upon us and it can be tempting to pull out the plastic. To enjoy a vacation that you are not paying for when the next vacation season rolls around, consider a plan that costs $1,000 or less and pay cash. You will no doubt enjoy your vacation more knowing that you will return home with only your memories and without credit card bills.
Starting With Smaller Goals First And Work Your Way Up Until You Achieve Financial Freedom
While you need to have a lot of positive-thought and confidence in order to be self-motivated, there are a few things that you can do which will help you to achieve all three things. These steps are generally pretty easy to do - and since they're simple steps, they may seem a little less daunting at first than having to figure out how to be positive-thinking and confident right out of the blue.
The Wealthy Mindset
What is the difference between wealthy people and poor (even average) people? It is not all the money that wealthy people have and the average don't, nor the luxury, nor the lifestyle. It is their mindset.
Tax Strategy - Theres More to Building Wealth than Clipping Coupons
We talked recently about the wealth formula:
The 11 Best Money Saving Ideas of All Time - Part 2
At any time in history, no matter what the current state of the economy, no matter what the current trends, no matter what the unemployment rate is or where interest rates lurk, some money-saving ideas stay true.
The Three Step Plan To Prosperity
You have $100 in your bank account, your rent is past due, your creditors are calling, your business is dwindling and to top it all off, someone sideswiped your car and now it won't start.
Who Wants To Be A Millionaire?
Steve Martin once delivered an opening monologue for Saturday Night Live in which he answered the age-old question "How can I be a millionaire?" His answer was fairly simple and straightforward, "First? get a million dollars." If at this point you can't help but feel that Mr. Martin performed an extraordinary feet of oversimplification that night, then I urge you to read on, and hopefully, by the time you finish this essay, you'll be convinced that becoming a millionaire isn't nearly as difficult as everyone makes it out to be. Through a simple three-step process which I will lay out clearly, the keys to the millionaire's club will be shown to be available to anyone willing to merely reach out and grab them.
How to Save Money for Retirement
Saving money for retirement can be easy or difficult depending on your current salary. If you are like 75 percent of the American population, earning just enough money in your current job to meet your monthly bills, then it's time to do some serious thinking on how you are going to live when you retire.
The 9 Critical Steps To Success In Demolishing Your Money Worries For Good!
Articles on 'How to make money' come a dime-a-dozen. How about a fresh, new perspective? Here's a rather unique, untapped, revolutionary article about the 9 Simple (Yet Powerful) Steps You can use right now to Demolish Your Money Worries for Good,...for Life,...Forever!
Super-charge Your Dream of Retiring Rich with the Roth 401K!
This retirement account is so new and unique that you may not have heard of it. For additional reasons, I describe in my home study course, corporate insiders may not want to offer it to corporate employees. This is because some executives only consider their employees canon fodder.
Why do Some People Rake in the Dough while Others Spin Their Wheels to No Avail?
Here's the truth: I have read hundreds and hundreds of books about personal finances, from the conventional world of financial planning, to the trendy how-to-get-rich programs to the New Age gurus of money.
|home | site map|