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Tan Liu: Why Many Of Today’s Most-Owned Stocks Are Ponzi Schemes

Stocks provide a return to today’s investors via two mechanisms: dividends and capital gains.

Dividends provide and income stream which can be quantiatively values. Capital gains result from speculation — an expectation that future dividends will be higher than the market currently expects.

But what’s the value of a company that continuously pays no dividends and does not appear as if it ever will in the foreseeable future?

Former financier and current statistician Tan Liu, author of the recent book The Ponzi Factor: The Simple Truth About Investment Profits explains how many of today’s perpetually dividend-less companies traded on the public market are operating as ponzi schemes by definition.

Tan Liu: Why Many Of Today’s Most-Owned Stocks Are Ponzi Schemes

by Adam Taggart

Stocks provide a return to today’s investors via two mechanisms: dividends and capital gains.

Dividends provide and income stream which can be quantiatively values. Capital gains result from speculation — an expectation that future dividends will be higher than the market currently expects.

But what’s the value of a company that continuously pays no dividends and does not appear as if it ever will in the foreseeable future?

Sheelah Kolhatkar: Hedge Funds Are The Robber Barons Of Our Time

by Adam Taggart

Sheelah Kolhatkar, former hedge fund analyst and staff writer at the New Yorker, thinks hedge funds have enjoyed enormous unfair advantages for far too long.

In her recent book Black Edge: Inside Information, Dirty Money, and the Quest to Bring Down the Most Wanted Man on Wall Street, she details out how many hedge funds use financial engineering and accounting tricks — legal and illegal — to fill their coffers at investor expense. And then they use those ill-gotten gains to influence politics.

Sheelah Kolhatkar: Hedge Funds Are The Robber Barons Of Our Time

by Adam Taggart

Sheelah Kolhatkar, former hedge fund analyst and staff writer at the New Yorker, thinks hedge funds have enjoyed enormous unfair advantages for far too long.

Chaos & Volatility On The Rise

by Chris Martenson

No, that’s not a ‘click bait’ sensationalist article title. Things are getting ‘weird’ out there if you’re trying to be polite, and downright chaotic if you are being blunt. Everywhere we look, we see signs that the systems that support us are breaking down.

All of these are signs that the status quo has failed and continues to fail us. But the form of power expressed by our so-called ‘leaders’ today seems nearly incapable of healthy introspection coupled to correct action; preferring instead to do more of the same things that got us into this mess in the first place.

Chaos & Volatility On The Rise

by Chris Martenson

Off The Cuff: Race For The Exit

PREVIEW

by Adam Taggart

In this week's Off The Cuff podcast, Chris and Mish Shedlock discuss:

The Fab 5
- Without these 5 stocks, the S&P would be negative for the year
The "Positive" Impact Of The Paris Attacks
- Are they kidding???
The Insatiable Military Industrial Complex
- Crisis is being fabricated to keep it fed
Housing Is Looking Sick
- More and more weakness is showing

Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today.

Off The Cuff: Race For The Exit

PREVIEW by Adam Taggart

In this week's Off The Cuff podcast, Chris and Mish Shedlock discuss:

The Fab 5
- Without these 5 stocks, the S&P would be negative for the year
The "Positive" Impact Of The Paris Attacks
- Are they kidding???
The Insatiable Military Industrial Complex
- Crisis is being fabricated to keep it fed
Housing Is Looking Sick
- More and more weakness is showing

Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today.

Bankers Own the World

by Chris Martenson

Today, some of the most celebrated individuals and institutions are ensconced within the financial industry; in banks, hedge funds, and private equity firms. Which is odd because none of these firms or individuals actually make anything, which society might point to as additive to our living standards. Instead, these financial magicians harvest value from the rest of society that has to work hard to produce real things of real value.