It is really terrible when people are preyed upon. We are learning more every day that we have to be knowledgeable about investing and savings. In fact, over the weekend, friends showed us an advertisement that offered 5% interest rate. We pondered whether it was legitimate since the going rate is less than 3%. I did not know the answer, neither did Charles or Laura. We all do our best to figure out what is the right thing to do. We have to have some trust to turn our money over, whether it is to a bank or a person.
It is a terrible thing to find that one has been defrauded by a 'Ponzi scheme.' This is an operation that pays returns to investors out of the money paid by subsequent investors rather than from profit. My Dad used to call is ‘robbing Peter to pay Paul’ and now we see that the Social Security has been a pyramid scheme from the beginning.
Those who paid in first received money from those who paid in second — and so on, generation after generation. The government can force people to pay into their Ponzi scheme, Madoff could not. Who is the bigger criminal?
About Me
- Candy Schaap
- Candy Schaap and husband, Dr. Charles B. Schaap are the most famous trading team in the world. He is the author of the book "ADXcellence - Power Trend Strategies" and "Invest with Success". Candy started her career hedging futures for a large corporation and has 25 years of trading experience in futures, options, stocks and bonds. She does consulting, lecturing and writes financial articles. She publishes the ADXcellence Trade Letter and mentors the TraderDoc "Loot Camp".
Merry Christmas! I had enlightenment over the past week.
ReplyDeleteWith holiday parties and visiting, I had a chance to talk with a lot of people. Finance was a big topic. Almost everyone was lamenting the fall in the value of IRAs and the generally bad economy.
I was startled at one dinner, 5 minutes after a arriving, a man announced that he had lost 45% of his IRA worth, but he had '30 years to make it back and anyway, it isn't a loss because it's only on paper.' And then he looked around the room with a big smiling face like he was proud.
I actually know Candy, and the first thought that came to my mind is, "Candy would make mince meat out of this guy" and the second thought was, "He is foolish"
A few months ago, I would have thought the same things he was saying. Now I can only see it as victim mentality. The fact that he announced this loudly and for no reason (it was a holiday dinner) got me thinking that people LIKE being seen as a victim. Candy says that profits are a choice, so I guess being a loser is a choice, too. This guy certainly seemed to like his choice.
At another party, we got to talking about Dr. Schaap's new book, "Invest with Success". Those of us who had read it believe that with the publishing of this book, there is no reason for anyone to be ignorant of how the stock market works. There is never again a reason to take a 45% loss of capital or savings. Those who had not read the book, rather than hear anything we had to say, wanted to argue how the 'market is fixed' and losses are inevitable. (I can only imagine they like losing money!)
It is easier to make excuses and shift blame than to have to go through the process of learning something new or changing what one is doing. Or god-forbid, read a book!
My enlightenment came last night, thinking about the various people I had talked with who seemed to relish theior losses and their lack of knowledge about money. Not one person wanted to learn how to not lose money. Not ONE! I see that they were choosing to lose money. One guy even said, "I don't have time for that crap. That's the money guy's job." (First of all I never think of my money as crap, second of all, he can send me all of his 'crap'.) But I asked him how his money guy was doing, and he said, 'The guy is a jerk. I have to get someone new." I don't get it, he let's a jerk manage his money?
It suddenly occurred to me that I can choose to be wealthy. Candy always says it, but now I believe it.
I think it is reprehensible what the government has done, what our government has become.
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