Jun 14 2023, 08:05 PM
QUOTE(MUM @ Jun 14 2023, 06:54 PM)
Shares or FD are not the same as MG.
Shares you buy low sell high.... you gain
Or you buy high to sell low, .... you lose.
Decided by you.,
when you want to lose or
how much you want to lose
Willing sellers, willing buyers of the shares
MG, ...
Investors has no Runaway decision making opportunity.
No willingness in the part of depositors when the MG runaway.
FD you put in the bank gives you interest.
The bank take the risk of paying you eventhough your deposit no one want to borrows.
The borrowers of your Deposits pays you "interest" + additional interest to the bank for their service and the risk the bank took.
The borrowers may make more money from the borrowed money.
The depositors gains, the bank gains and the borrowers may also gains.
MG, pay interest (returns) of existing depositors with the money taken from the latest depositors....
They older depositors made money from the money from the latest depositors.
No new depositors, no more new money to pay interest (returns) to the depositors.
MG runaway, both new and old depositors lost money that are still inside the MG.
MG founders has all the gains while the players has zero sum gains.
Trust me, they all know. Only those "naive" people will compare a MG with Stock Investment. Similar to those who compare gambling with investment. Shares you buy low sell high.... you gain
Or you buy high to sell low, .... you lose.
Decided by you.,
when you want to lose or
how much you want to lose
Willing sellers, willing buyers of the shares
MG, ...
Investors has no Runaway decision making opportunity.
No willingness in the part of depositors when the MG runaway.
FD you put in the bank gives you interest.
The bank take the risk of paying you eventhough your deposit no one want to borrows.
The borrowers of your Deposits pays you "interest" + additional interest to the bank for their service and the risk the bank took.
The borrowers may make more money from the borrowed money.
The depositors gains, the bank gains and the borrowers may also gains.
MG, pay interest (returns) of existing depositors with the money taken from the latest depositors....
They older depositors made money from the money from the latest depositors.
No new depositors, no more new money to pay interest (returns) to the depositors.
MG runaway, both new and old depositors lost money that are still inside the MG.
MG founders has all the gains while the players has zero sum gains.
FYI , I still see alot "youngster" thinking in that way, that going to Genting as an investment. In the end of the day all "po kai"
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