Category: Stock Market

Wall Street Is the Definition of a Ponzi Scheme (Literally)

Maybe it makes me unsophisticated, but I don’t think about the stock market that much. I know that many say it’s the central nervous system of our economy. I know its estimated worth is around $30 trillion. And I know that when it tanks, the lives of millions of Americans are wrecked, ruined and upended. I know that when that happens, the powerful millionaires (and billionaires) who caused said destruction generally grab their money and their well-coiffed dogs and run for it. (Sometimes our government has to step in to make sure the elites get all of their money and don’t have to share in the devastation they’ve dispensed to the lower classes.)

“A share of Google can trade around $900, but Google explicitly states in writing that the par value of their stock is only 0.001 dollars. Google also says that they do not pay their investors any dividends, and their class C shareholders have no voting rights. So, if you own a share of GOOG, you won’t receive any money from Google, you won’t be allowed to vote on corporate issues, and Google isn’t obligated to pay you anything more than 0.001 dollars for that share you bought for $900.”

via Wall Street Is the Definition of a Ponzi Scheme (Literally)