Money
It is not about intelligence for those who fall for pyramid schemes
A huge mystery is why so many people broke a cardinal rule of investing by putting all their eggs in a single basket.
Posted Wednesday, January 7 2009 at 14:22
Investors - as both Madoff and our pyramid schemes indicate - can become prey to their own trusting nature.
Mr Rosenbald wrote that many investors were led to Madoff by similar connections in Jewish social and philanthropic circles in what he called affinity investing — investors let their guard down and are liable to break investment rules when they are led to the water by someone they trust.
The Kenyan connection is that investors here were taken down the drain by respected religious leaders many of whom were part-owners in the schemes. Others received commissions for the “flock” delivered to the scheme.
“Ask the investors how many of them got into the schemes through their pastors’ persistence and encouragement and you will be shocked,” said Mr Kinyua.
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Submitted by mtimlePosted January 09, 2009 01:22 PM
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Submitted by ongojo
Ignorance, greed!! Sleeping dogs....when they wake up it is too late!!
Posted January 09, 2009 08:43 AM -
Submitted by SJ502
Greed should not be mistaken with prudent investment decisions. The belief that one will make a ‘killing’ in snap profits blinds you to the fact that there are other bigger and smarter predators lying in wait too... in the ‘Mad of’ case the system overwhelmed him, it become a monster that devoured him. Everybody loses in such 'faith' scheme, there are no winners as the law finally catches up with the schemers.
Posted January 09, 2009 08:28 AM -
Submitted by gaciru
Hoping a lesson was learnt. Kenyans should know that when a deal is too good, they should think twice and that not all glitters is gold.
Posted January 09, 2009 02:28 AM -
Submitted by naliweliwalo
Pyramid schemes have been around for decades, and are driven by greed! Please diversify your investments and ask basic questions to 'investors' to whom you entrust your money!
Posted January 08, 2009 05:11 PM
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Ooh pls don't give us this self justification bull. It doesn't even take intelligence, just good old plain common sense! Only idiots or people used to easy, possibly criminally acquired money got skimmed via these schemes! I don't know a soul who sweat blood and tears, to make a little money, only to give it to sky gazers to multiply!! Its plain daft!