Anatomy of a Scam: This "Prime Bank Program" Has Already Cost Investors Billions
| By Shah Gilani Contributing Editor Money Morning Two years ago, an associate of mine lost $100,000 because he didn't listen to me. A year ago, I saved a manufacturing company from the same scam. And just last week I saved a friend of mine $300,000. For several years now, a far-fetched but seemingly plausible investment opportunity has been wreaking havoc across the globe. In the United States alone, an estimated $10 billion has been lost in this particular gambit. The scheme is typically hidden behind such legitimate-sounding names as "Prime Bank Trading Programs," "High-Yield Investment Programs," or "Roll Programs." These are not legitimate investment opportunities. The reality is, they are outright scams. And my role as a professional investor has provided me with an up-close-and-personal vantage point from which to observe some of these con games. Read Full Article » Is Timothy Geithner A Roadblock to Regulatory Reform? | By Jason Simpkins Managing Editor Money Morning Financial disclosure forms revealed last week that some of U.S. Treasury Secretary Timothy F. Geithner's closest aides earned millions of dollars a year working for top Wall Street firms. That finding alone would not likely be enough to cast doubt over Geithner's ability to take the lead in reforming the financial system. But this isn't the first time the Treasury Secretary has come under fire for maintaining close ties with Wall Street, while failing to look out for the interest of the average American. Read Full Article » The Index That Thrashed the S&P 500 | By Peter Krauth Contributing Editor Money Morning The Standard & Poor's 500 Index has zoomed 61% from its March 9 lows, lifting investor spirits and fueling confidence in the U.S. economic rebound. But there's an even hotter index. This one is up 85% from its late-2008 nadir. And it's tied heavily to companies that produce gold, silver and other commodities – which themselves have been pretty hot of late. I'm talking about Canada's S&P/TSX Venture Index, formerly known as the Canadian Venture Exchange. The "venture" portion of its title is appropriate – more than 75% of the companies listed on the CDNX are so-called "junior miners." Read Full Article » |
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