Wednesday, October 11, 2006

Not Surprising
A real estate firm returns are not available in any investment - yes, you can get lucky with a good stock pick but no one is capable of generating 25% returns in stocks every six weeks - and investors that look for and invest in deal that promise that offered investors 25% returns in as little as forty-five days has missed interest and principal payments, is closing shop and is being investigated by the SEC. The firm allegedly used investor proceeds to buy and "flip" foreclosed properties. (I think someone watched too many late night infomercials.) I don't feel sorry for the company, because they likely stole a good portion of the money or paid it out to investors - how does one spell Ponzi? I don't feel sorry for investors because investors looking for this kind of return need to know better. Outsizedunbelievable returns deserve to lose their money. In the article, one dumb sap took out a second mortgage on his house to invest in this scam. His penalty will be having his wife scream at him for the rest of his life.

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