Consumers' News

KEISER REPORT

 

Every week Max Keiser looks at all the scandal behind the financial news headlines.

A 15 pound computer to inspire young programmers

 

The games developer David Braben and some colleagues have demonstrating something called Raspberry Pi. It's a whole computer on a tiny circuit board - not much more than an ARM processor, a USB port, and an HDMI connection. They plugged a keyboard into one end, and hooked the other into a TV they had brought with them.

Silent Heart Attacks: A Special Newsmax Heart Health Report

 

According to Dr. Crandall, the reason silent heart attacks go untreated is because people don't even notice the symptoms, so he created a special video presentation to show the four things to look for that may be a silent warning - before it's too late to intervene and survive the damage.

Dr. Chauncey Crandall Discovers the Silent Heart Attack Symptoms
Click to watch Dr. Crandall's video on four hidden stroke and heart attack symptoms.

Timing is the most critical factor for survival. Statistics show a clear link between delay in treatment and disability or death - the amount of time that elapses between the first sign of symptoms and receiving care.

Consuming cola and similar soft drinks

 
What happens to the human body after drinking a can of cola

Complaining: A few words …

 

There is a peculiar mentality in Britain whereby if one complains about something shoddy one is often told to stop complaining, to be positive, to be supportive … in other words, tow the PC line.

Perhaps it's time that angry complaining about what is wrong should be welcomed rather than continuing to wallow in the smug complacency.

Buying Services: Your Rights

 

The Supply of Goods and Services Act 1982 states that when work is carried out by a trader you can expect it to be done with reasonable care and skill, in a reasonable time for a reasonable charge.

The Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer Contracts Regulations 1999 allow you to challenge terms that may be unfair or unreasonable and/or restrict your statutory rights. When you enter into an agreement for work to be done that costs over £35 you are entitled to a minimum seven-day cooling-off period to be notified in writing. When you find that work carried out is unsatisfactory, or takes too long to complete, you may be able to claim compensation.

If you think you have been conned

 
  • Keep all correspondence
  • Report the incident to the police and ask for a crime reference number
  • Inform your local trading standards office
  • Report it to Action Fraud, a service run by the National Fraud Authority
  • Inform your bank or credit card company and ask what cover you have under the Consumer Credit Act or the bank's chargeback scheme

Ponzi Schemes & Pyramid Schemes

 

What are some of the similarities and differences between Ponzi and pyramid schemes?

Angry!

A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk. In many Ponzi schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors and to use for personal expenses, instead of engaging in any legitimate investment activity.

This scheme is named after Charles Ponzi, an Italian immigrant to the United States who duped thousands of New England residents into investing in a postage stamp speculation scheme back in the 1920s. At a time when the annual interest rate for bank accounts was five percent, Ponzi promised investors that he could provide a 50% return in just 90 days. Ponzi initially bought a small number of international mail coupons in support of his scheme, but quickly switched to using incoming funds to pay off earlier investors.

However, after pulling in millions of dollars, it eventually became apparent that the investment plan was nothing but a fraud. It was uncovered that, in order to reach the level of investments that were made, 160 million coupons would have needed to be issued. In reality, only 27,000 had been. Soon afterward, Ponzi was arrested and indicted.

The “mini-Madoffs” fraud

In February 2009, the City of London's Police arrested a trader accused of involvement in a £40 million investment scam. Terry Freeman, a foreign exchange trader with GFX Capital Markets Ltd was questioned on suspicion of money laundering and offences under the Financial Services and Markets Act.

The fraud has been described as a “mini-Madoffs”, a reference to the $50 billion (£34 billion) Ponzi swindle allegedly perpetrated by the disgraced US financier, under which wealthy investors were paid unsustainable returns from funds injected by new investors.

Groupon Inc.: A case of too much financing gone bad

Groupon was a known and notorious Ponzi scheme; they took it public for 18 billion, now it has crashed through the IPO price, trading for many billions of dollars less, but for a brief shining moment it looked good”, said Max Keiser, an outspoken financial analyst.

A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, without any product or service being delivered.

Ponzi and pyramid schemes are closely related because they both involve paying longer-standing members with money from new participants, instead of actual profits from investing or selling products to the public. Here are some common differences:

 
Pyramid Scheme
Ponzi Scheme
Typical “hook” Earn high profits by making one payment and finding a set number of others to become distributors of a product. The scheme typically does not involve a genuine product. The purported product may not exist or it may only be "sold" within the pyramid scheme. Earn high investment returns with little or no risk by simply handing over your money; the investment typically does not exist.
Payments/profits Must recruit new distributors to receive payments. No recruiting necessary to receive payments.
Interaction with original promoter Sometimes none. New participants may enter scheme at a different level. Promoter generally acts directly with all participants.
Source of payments From new participants – always disclosed. From new participants – never disclosed.
Collapse Fast. An exponential increase in the number of participants is required at each level. May be relatively slow if existing participants reinvest money.

What is the benefit of keeping a King or a Queen?

 

Queen Elizabeth II, Dorothy Wilding, 1952What is the benefit of keeping a King or a Queen? There is no other person in the world whose title is as impressive as the King or Queen of England. For sheer grandeur and symbolism nothing can touch it. The President of the United Stated comes second - but he is only going to be there for eight years at most.

History and symbolism are important, especially in trying to create a nation; trying to make millions of people who don't know each other unite under the same banner. That is why America has worked so hard to elevate the idea of the President to an almost religious status.

If you have something that is richly symbolic and you throw it away it is hard to build it up again. The idea of the monarchy is so central to the idea of what it means to be British, that, at a time when we are struggling for an idea of national identity as it is, it would be too destructive to rip it out.