From: hal@finney.org
Date: Sat Jan 22 2000 - 13:31:51 MST
Here was a comment about StockGeneration from another mailing list, in
reference to a similar operation being started in a few weeks:
> The game is to be modeled after StockGeneration. StockGeneration was set up
> in a form which would be a legitimate gambling operation IF they played by
> their own rules, set up a reserve cash pool to cover the share prices of
> their stock, and readjusted the price of the stocks each day as people buy
> and sell them, to keep their total pool reserves at the same percentage of
> total stock capitalization. HOWEVER, in 2 years, they've never dropped the
> price of their largest, and, by far, most popular stocks, and so their
> liabilities have grown FAR in excess of their assets and now they are
> delaying withdrawals by 4 months, and putting several restrictions on
> withdrawals. StockGeneration is now crashing as a ponzi scheme.
As people here noted, Ponzi schemes always end up crashing - usually just
after YOU are invited to join (so you're the one who ends up holding the
bag).
Hal
This archive was generated by hypermail 2.1.5 : Fri Nov 01 2002 - 15:26:22 MST