For those old enough to remember, back in the mid-1980s was the co-op (cooperative) scam which operated by promising very high interest rates (around 18% pa) for fixed deposits. People never asked the simple question as to how the co-ops can generate so much profit to be able to give such returns. Eventually the bubble burst and everything crashed. BNM stepped in and it took years before the victims got back some of their money from this Ponzi scheme. Sadly, this Genneva thing is basically a replay of the Ponzi scheme. Only the details differ but the fundamental methodology is the same.

I am no fan of BNM (eg low interest rates for FD and savings) but in this instance, I sympathise with BNM.

It is clear to me that Genneva is a Ponzi scheme. BNM's dilemma is this - If they put a stop to a Ponzi scheme while it is still running (as is the case here), they get blamed by the gullible "investors" and "CONsultants". On the other hand, if BNM does nothing, when the scheme finally collapses, the same "investors" and "CONsultants" will be shouting "Why BNM did not put a stop to this?", "Now BNM must compensate me for their negligence", etc, etc.

Like the well-worn cliche - Damned if they do and damned if they don't.

In my opinion BNM did the correct thing. Better to stop it now and deal with the problem now or end up dealing with a much bigger problem in the future.

This post has been edited by m300: Oct 6 2012, 10:17 PM

I am amazed that there are people who are so greedy, gullible and stupid. Having already been conned by Genneva and the CONsultants, they are still singing praises about Genneva and criticising BNM. These people seriously need to have their brains checked.

I was told about this gold thing about 9 months back. After a couple of sentences, I just said "Scam. Not interested".

This post has been edited by m300: Oct 10 2012, 11:02 PM