PONZI + SCAM + BUBBLE + FRAUD LEGAL IN MALAYSIA ! COME OPEN INVITE !
God
COME INVEST YOUR MONEY HERE ! IN FACT MALAYSIA HAS SECOND HOME PROGRAMME FOR
FINANCIAL SO-CALL CRIMINAL! JUST BRING IN YOUR CASH MALAYSIA IS THE SWISS $
COUNTERPART FOR ASIA.
What is a MLM Pyramid ? It's legal in Malaysia as long as investor pours in
$$$$$ Check out the FREE Money Lords operating their LEGIT SCHEMES at
http://www.ZHULIAN.com.my
A multilevel pyramid scheme is a form of fraud similar in some ways to a
Ponzi scheme, relying as it does on a disbelief in financial reality,
including the hope of an extremely high rate of return. However, several
characteristics distinguish these schemes from Ponzi schemes:
In a Ponzi scheme, the schemer acts as a "hub" for the victims, interacting
with all of them directly. In a multilevel scheme, those who recruit
additional participants benefit directly. (In fact, failure to recruit
typically means no investment return.)
A Ponzi scheme claims to rely on some esoteric investment approach (insider
connections, etc.) and often attracts well-to-do investors; whereas
multilevel schemes explicitly claim that new money will be the source of
payout for the initial investments.
A multilevel scheme is bound to collapse much faster because it requires
exponential increases in participants to sustain it. By contrast, Ponzi
schemes can survive simply by persuading most existing participants to
"reinvest" their money, with a relatively small number of new participants.
A bubble. A bubble relies on suspension of disbelief and an expectation of
large profits, but it is not the same as a Ponzi scheme. A bubble involves
ever-rising (and unsustainable) prices in an open market (be that shares of
a stock, housing prices, the price of tulip bulbs, or anything else). As
long as buyers are willing to pay ever-increasing prices, sellers can get
out with a profit, and there doesn't need to be a schemer behind a bubble.
(In fact, a bubble can arise without any fraud at all - for example, housing
prices in a local market that rise sharply but eventually drop sharply
because of overbuilding.) Bubbles are often said to be based on the "greater
fool" theory. Although, according to the Austrian Business Cycle Theory,
bubbles are caused by expanding the money supply beyond what genuine capital
investment supports, and in this case would qualify as a Ponzi scheme, with
expanded credit taking the place of an expanded pool of investors.
Robbing Peter to pay Paul. When debts are due and the money to pay them is
lacking, whether because of bad luck or deliberate theft, debtors often make
their payments by borrowing or stealing from other investors they have. It
does not follow that this is a Ponzi scheme, because from the basic facts
set out there is no indication that the lenders were promised
unrealistically high rates of return via claims of unusual financial
investments. Nor (from these basic facts) is there any indication that the
borrower (banker) is progressively increasing the amount of borrowing
("investing") to cover payments to initial investors.
Multi-level marketing.
Pay-as-you-go social insurance. Detractors of the Social Security program in
the United States often draw parallels between it and a Ponzi scheme,
because people who make payments receive benefits later from payments made
by others.[3] Conservative economist Walter Williams adds, "Social Security
is unsustainable because it is not meeting the first order condition of a
Ponzi scheme, namely expanding the pool of suckers."[4] However, as the
Social Security Administration points out, "There is no unsustainable
progression driving the mechanism of a pay-as-you-go pension system" and as
"As long as the amount of money coming in the front end of the pipe
maintains a rough balance with the money paid out, the system can continue
forever."[1] See also Social Security debate (United States)#Criticism of
Social Security as a Ponzi Scheme.
http://en.wikipedia.org/wiki/Ponzi_scheme