Madoff promised 10% annual returns | Bitcointalksearch.org

Monster-Ant

member

Activity: 112

Merit: 10

The ants came marching one by one

Quote from: Berend de Boer on September 11, 2012, 04:07:53 PM

He actually promised 15%. And everyone trusted him, because he was audited by the government.

Solution: simply abolish government audits. Buyer beware is cheaper, more efficient, and far more effective.

As we saw with Pirate?

I just read that entire thing. Buyer beware sounds good, until you realize that it looks like a lot of buyers aren't capable of getting out of bed without bursting into flame.

Here's a good rule of thumb: If they offer you more than 5% annual returns it's more than likely a scam. If they offer you monthly payouts, it's a scam. If they offer you weekly payouts, they'll steal your car to drive to the airport and fly off with your money.

Roy Badami

hero member

Activity: 563

Merit: 500

Peripherally related, but one of the interesting effects of the various interrelated ponzi schemes seems to have been that it helped support the inflated the rates people are/were willing to pay for loans.

Effectively, I infer, there was a carry trade where people borrowed at usarious interest rates only to invest in ponzi schemes at even higher returns. Of course, this may not be the only effect - these are unsecured loans, often short term - much like payday loans which charge enourmous interest in the fiat world, too. But it will be interesting to see what happens as the carry trade unwinds, and lenders find themselves with non-performing loans.

Will %/week remain the norm for BTC loans? We will see....

roy

Berend de Boer

newbie

Activity: 12

Merit: 0

He actually promised 15%. And everyone trusted him, because he was audited by the government.

Solution: simply abolish government audits. Buyer beware is cheaper, more efficient, and far more effective.

kokojie

legendary

Activity: 1806

Merit: 1003

Bernie Madoff promised most of his clients steady/safe 10% annual returns, and it was a ponzi. Just use this as a guide when you consider any "investment" on this forum, especially if they promise to be low risk/steady/safe investment.

Topic: Madoff promised 10% annual returns (Read 1752 times)