9.28.2005

Fraud Alert!

Note: The following is a lie:

"The Largest Torrent of New Profits Ever Unleashed"

"...Right now the biggest redirection of capital the world has ever seen is underway. Billions of dollars are leaving the once-rock solid U.S. markets and flooding into blue-chip companies based outside of the U.S. There are many reasons it's happening: the U.S. dollar is flagging, mostly under a growing mountain of debt. Global investors view mature U.S. markets as having less and less room for growth. They see the future in emerging powerhouses like China, India and other once secondary economies that are beginning to stir.Quite frankly though, the reasons aren't as important as the trend itself.Here's the secret: Know where the money's headed and you'll get rich."

What is wrong with this guy's assertions? First of all, capital is flowing INTO the US, not out of it. How do we know that? Because those foreigners are still lending us money to pay for our deficit. If they weren't, our interest rates would skyrocket.

Also, the US dollar is NOT flagging.

And the 'mature' markets of the US are also very stable ones. If you had a chunk of change, wouldn't you want to put it in a stable place? However, if you had a little change and wanted to get rich quick, feeling left out of the tech and housing booms, then you would listen to this guy.

Money is still being sent to the US markets for investment because it is still widely seen as a safe place for your money. And as for growth, returns across the planet are poor. The US is still relatively a good place for placing your money because there is some return on it. (See Greenspan's remarks on accepting low returns for higher risks, though.)

The message at the top is designed for gamblers, people who base their investment decisions 'instinct' rather than numbers and analysis. They are the "I have inside information" or "I'll hop on the next trend and get rich" feelings of people who view investing like going to the track. It's sad.

Econo-Girl read somewhere that when people make investments that go well, they think of themselves as smart. When investments go bad, they blame bad luck. The emotional aspects of investing are often the biggest problem people have in making choices that take care of them.

That is why Econo-Girl HATES, LOATHES, DESPISES casinos. Those sneaky dirtbags do everything they can to get Econo-Girl off of her analytical game. No clocks, disorientation, sleazy slot machines where you no longer have to even move your arm to play, all are examples of dirty tricks to get a person to make poor decisions.

The author of the above quote is the same or worse. He is pretending to offer investment advice based on patently false information. Does the author even KNOW anything about doing business in China or India? They are two radically different places. Econo-Girl bets he hasn't been to either of them.

Oh, and the author's primary claim of 'blue chip companies' off of US shores and how capital is leaving the US? Well, name ONE blue chip company in China, India, or Indonesia. They are emerging markets, right? A country becomes a high growth emerging market because it once had a third world economy and is changing.

It is the classic bait and switch. He calms the reader by mentioning blue chip companies, thereby evoking all of your feelings about that security, and then gets your greed in the game by nattering on about high growth in third world nations. The author of the above paragraph is a fraud and a con artist. Econo-Girl is mad.

5 comments:

The Lazy Iguana said...

You know the guy is just shilling for some China investment company. He may or may not know that he is full of manure - but either way he does not care. He is just doing his job.

But I like casinos. Their game does not throw me off. Like a good capitalist, I look for the areas to exploit. For example, last time I was in Vegas I found a 25 cent video poker machine at a hotel bar (Tropicana to be exact). I would play at 25 cents a hand, while drinking FREE premium vodka. My plan was to "loose" 10 or 15 bucks, while running up a $40 or $50 bar tab that I would not have to pay.

As it turned out, I made a 75 cent bet and hit 4 of a kind. The payout was close to $90. All in quarters. The bar tab was still free. I put $20 in the machine to start with.

lewis_medlock said...

.......no gambler here. that includes lottery, horses, casinos, whatever.
I try to be as self reliant as I can be.....and that is PRETTY DARN self reliant...casinos in particular are the polar opposite of self-reliance.

Plus you have to 'dress up'.....which is only done for funerals, weddings and when the wife buys me new clothes.

Econo-Girl said...

Econo-Girl loves to dress up, but not for losing money.

Kudos to Iggy for finding the angle in Vegas. After flying out of there, Leisure Lad made me promise never to get him to enter the states again.

The Lazy Iguana said...

You do not have to dress up. You can wear shorts and a T-Shirt for all the casinos care. Even in the high roller section. If you are playing $100 a hand blackjack, you think the casino cares if you are stark naked? Nope.

The secret to Vegas is to stick to your gambling budget. Set aside whatever you can afford to loose and not a penny more. Look at it as entertainment. And if you happen to win, replenish your budget and find a way to deposit the rest of your winnings into the bank ASAP.

Or use your winnings to take in a show. Or rent a car and go sight seeing. Whatever.

Vegas really is a fun place to be. There is more to the town than just casinos. Take in some shows. Scarf the food - the buffets are cheap (subsidised by the casino loosers) and the food is pretty good. Go see the Hoover Dam and Lake Mead. Drive into Arizona and see the Grand Canyon. Relax in the hotel pool. Scam free drinks while playing on the 5 cent slot machines.

There is much to do.

lewis_medlock said...

........NV is too warm for me anyway.

give me the UP of MI or western WY anyday!

LM