$7 Million "Triple Algorithm" Ponzi Scheme in Colorado

Daniel Drew,  7/2/2015

Virtu Financial

The public is becoming increasingly aware of how profitable high-frequency trading can be, but unfortunately, they remain oblivious to how fraudulent it actually is, which explains why a Colorado woman was able to raise $7 million by touting her dubious "triple algorithm" investing scheme. She called it a "lifetime income plan" that could deliver annual gains of 700%. At this point, some may be wondering if these "investors" deserved to lose their money.

Federal Reserve Says Robin Hood Not Compatible With Viagra Capitalism

Daniel Drew,  6/30/2015

Robin Hood

Have you been stimulated? Do you have a Bernanke Boner? Have you had an episode of liquidity that lasted longer than 4 hours? Call the Fed Chairman for assistance. The Federal Reserve is the authority on stimulation, and they can determine whether you have been properly stimulated or not. According to them, getting a check from the 1% is not stimulating enough; it may just give you a semi.

Collapsing CDS Market Will Lead To Global Bond Market Margin Call

Featured in Zero Hedge

Daniel Drew,  6/28/2015

Credit Default Swaps Notional Principal

As Zero Hedge previously noted, liquidity is there when you don't need it, and it promptly disappears once it is in demand. Consider it "cocktease capitalism." If liquidity lasts longer than 4 hours, call the CFTC because you may be experiencing a spoof. Right now, the ultimate spoof is setting up as the credit default swap market collapses, and a global bond market margin call is just around the corner.

Bill Ackman Goes Full Suze Orman, Makes Financial Instructional Video

Featured in Zero Hedge

Daniel Drew,  6/25/2015

Bill Ackman Investment Keys

Want to learn about the stock market? Now you can learn to invest like a pro from Bill Ackman himself. The hedge fund manager discusses fundamentals like reasonable valuations, limited debt, and high barriers to entry. But he forgot to include some of the finer points of investing, such as market manipulation, insider trading, regulatory capture, and fleecing your investors. Fortunately, we have created some additional bullet points to help Ackman's audience understand how to do business on Wall Street.

Lying CEOs Crash Their Stocks

Featured in Zero Hedge

Daniel Drew,  6/24/2015

Tony Hayward

CEOs are not the most trustworthy figures in society. They will lay off thousands of employees to beat analysts' estimates, and yet they have no trouble looting the stock to pay themselves millions while the company loses money. However, one theme that keeps coming up is that unethical behavior has a price tag. Layoffs do not always boost the stock price. Treating people as expenses instead of assets does not pay off in the long run. Corruption is a drag on stock performance. Now, a new study shows that CEOs who lie about poor performance end up crashing their company's stock.

Peak Bond Markets: Crowdfunding Investment Website Offers 40% Returns

Daniel Drew,  7/1/2015

Yield Street Offering

The Bank for International Settlements recently reported that low interest rates have contributed to financial booms and busts, and "short-term gain risks being bought at the cost of long-term pain." Nonetheless, the Federal Reserve continues its obsession with stimulating the 1% while ignoring severe liquidity problems in the bond market. With government bond yields near historic lows, investors have piled into the stock market and other alternatives. Perhaps no other company epitomizes the speculative frenzy as much as Yield Street, a crowdfunding investment website which currently offers 40% returns.

A Wall Street Crash Course: How To Sell $1 For $100

Featured in Zero Hedge

Daniel Drew,  6/29/2015

The Wolf of Wall Street

On Wall Street, a vital skill is the ability to sell something that you know is completely worthless. Goldman Sachs did it when it sold ABACUS 2007-AC1 to investors while hedge fund manager John Paulson was betting against it. Paulson paid Goldman $15 million to peddle this junk, which was a collateralized debt obligation that would make money when millions of people lost their homes. The SEC charged Goldman with fraud, and they eventually settled for $550 million. If you're an enterprising Wall Streeter who wants to make a name for himself without breaking the rules, you can operate a tantalizing scheme that investors can't resist. It's called Shubik's Dollar Auction.

Rent A Tent, The Next Silicon Valley Startup

Featured in Zero Hedge

Daniel Drew,  6/26/2015

Rent A Tent

Thanks to rampant NIMBY policies in the San Francisco Bay area, the housing market is rigged and stuck in a perpetual shortage. One man decided he wanted to monetize a tent in his Mountain View backyard - for $900 per month. About 25 people have expressed interest, with some asking to stay a month or longer.

A $300 Million Layover: CYNK Mastermind Arrested After Phoenix Diversion

Featured in Zero Hedge

Daniel Drew,  6/24/2015

Catch Me If You Can

In what is probably the most expensive layover in history, Gregg Mulholland's international flight from Canada to Mexico turned tragic for him when his plane made a stop at Phoenix Sky Harbor International Airport on Tuesday. In an arrest that sounds like a scene straight out of Catch Me If You Can, the FBI finally closed the book on a story that began last July.

Mulholland took a page from The Wolf of Wall Street playbook when he turned CYNK Technologies into a $5 billion company. Mulholland made $300 million in illicit profits.

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