You don’t get the loop because it’s a scam at its core. It’s magic accounting by renting and selling “products” to yourself, other companies you made that are ultimately yourself, and other companies in the loop.
I guess I’m trying to understand the mechanics of it. Where do these things show up on financial statements. Admittedly I haven’t dug into it past trying to comprehend a few articles. I just wish the articles covering this laid it out in those terms rather than using ambiguous words like “pledge”
They use these vague terms because that’s what they vaguely did. I’m sure what they’re doing is highly illegal and they’re setting up the blame game as we write back and forth.
I’m positive they’re using these “pledges” to tell everyone bullshit numbers about their company’s value and assets. You would need a murder board to figure it out and explain it. Did you see the chart someone posted above? It’s that confusing and why they (and Enron) get (got) away with it for a long time. When it starts collapsing is when everyone realize what hit them. This is going to be a shitty, shitty time for all of us since every day people are going to be the ones bailing them out. These are all companies “too big to fail.”
I saw a great YouTube vid that went through whether what they’re doing is illegal, and the conclusion was no. It’s not illegal, because all of this is happening in broad daylight and can be found laid out in their financial disclosures, although sometimes in footnotes and jargon. In this article even they mention how unlike Enron, which internally cooked its books, these companies are being propped up by public market reactions to press releases, which is not illegal. It’s still a house of cards though.
I’ve gotten rid of all my large-cap index funds in my 403(b). By their nature, they invest so much money in the companies listed above. My money’s on small- and medium-cap American companies to weather the impending crash, as well as on European and Asian companies.
You don’t get the loop because it’s a scam at its core. It’s magic accounting by renting and selling “products” to yourself, other companies you made that are ultimately yourself, and other companies in the loop.
I guess I’m trying to understand the mechanics of it. Where do these things show up on financial statements. Admittedly I haven’t dug into it past trying to comprehend a few articles. I just wish the articles covering this laid it out in those terms rather than using ambiguous words like “pledge”
They use these vague terms because that’s what they vaguely did. I’m sure what they’re doing is highly illegal and they’re setting up the blame game as we write back and forth.
I’m positive they’re using these “pledges” to tell everyone bullshit numbers about their company’s value and assets. You would need a murder board to figure it out and explain it. Did you see the chart someone posted above? It’s that confusing and why they (and Enron) get (got) away with it for a long time. When it starts collapsing is when everyone realize what hit them. This is going to be a shitty, shitty time for all of us since every day people are going to be the ones bailing them out. These are all companies “too big to fail.”
I saw a great YouTube vid that went through whether what they’re doing is illegal, and the conclusion was no. It’s not illegal, because all of this is happening in broad daylight and can be found laid out in their financial disclosures, although sometimes in footnotes and jargon. In this article even they mention how unlike Enron, which internally cooked its books, these companies are being propped up by public market reactions to press releases, which is not illegal. It’s still a house of cards though.
I’ve gotten rid of all my large-cap index funds in my 403(b). By their nature, they invest so much money in the companies listed above. My money’s on small- and medium-cap American companies to weather the impending crash, as well as on European and Asian companies.