Why do the rich get richer? Well because the not rich and poor get duped into supporting legislation and rules to make the rich get and stay rich. Want a quick example? It has to do with your money, specifically your savings. The money you worked so hard to earn, pay taxes on and finally save. Once you got it free and clear, you can use or spend it on anything legal. Including heavy gambling. Sports betting, craps, roulette, lotteries and the biggest rip off of all, slots. Oh, you can even invest it, as long as you do so in SEC-anointed stocks. This way, you, the Little Joe and Little Josephine Retail Investor is protected from frauds and ripoffs, such as options backdating, fake revenue bookings, non-FASB compliant revenue recognition, creative accounting like formerly at Groupon where theyd play with the handling of marketing expenses (which were huge) to show better results and so on. Yeah, so this means with SEC-anointed stocks you can or could by Enron, Global Crossing and so on. Oh,by the way, these SEC-anointed stocks have been famous for having the very same risks, the SEC tells you they protect your from -- options backdating, et al.... Isnt that great? Well, what kind of stocks cant you buy? Well, you cant be WHOLESALE. You cant get in on the ground floor of a start. Thats right you cant just buy their stock, even though its your money, even though you can get fleeced at a Vegas Casino, local Indian Casino or on NASDAQ or the NYSE.... Thats okay. Cause there, you see, youre a Retail Investor. Fleecing is the name of the game. Just dont go WHOLESALE. They wont let you. But arent there exceptions? Sure there are but most likely, in 99% of the cases these two exceptions do not apply to you: 1. You are friends of family. I doubt you were friends with Zuckerberg, Brin, Page and most others. And even if you were, they would in many cases be idiots to take the money unless you were very close friends or family because there is still the possibility that is their company failed you could sue for all of your investment back for violation of securities laws. Its a gray area. And to paraphrase one of my brothers, whos a IPO/securities lawyer, You only take money from family and friends if your life depends on it and even then its debatable for the aforementioned reasons. 2. Youre an accredited investor. Yeah, if youre accredited according the SECs definition, youre Golden! The rub is, each time more and more people qualify for accreditation, the SEC ups the requirement. Most recently, regarding the network requirements, they excluded the net worth of your primary home which, duh, is where most peoples wealth my be, since after all, we were told the home is a great investment -- but some many homes are up in value, well, wed all be accredited investors and that would drive down returns for the current WHOLESALE investors. So what is the SEC requirements to be an accredited investor? Well, youll be in about the top 5% of the nation if you use the income qualification metric ($500L USD a year and above = 1%).... a. You must have a net worth of at least $1 million US dollars, not including the value of their primary residence (that is, your home dont count, Homie!) or b. You have income at least $200K USD year for the last two years or if married, $300K USD with your spouse and have the expectation to make the same amount this year. Pretty steep requirements of how to spend YOUR MONEY....and pretty outrageous since WHOLESALE investment is about the only thing you cant invest in or buy with your money -- salty snacks, donuts, cigs, lotto tickets, play the slots, buy Enron or Global Crossing, no problem! Try to get in on the ground floor of a valley startup? Forgettabout? So Dear Mr. Sheep, I hope this has made you realize how small your are. You only exist for their pleasure and so that you can be occasionally fleeced as they need things you have or to keep you in line. Adam N. Williams John Taylor Ralph Sumner Aristotle Taipan Mike Rogers Jason de Luca Loren Fykes Peter St Onge Jonathan Starkas
Posted on: Fri, 14 Nov 2014 00:39:14 +0000
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