RE: Buyout threat29 Sep 2022 00:57
Sorry moniman but I beg to differ. The tulip bubble as you call it may have started off as an asset bubble but became a classic ponzi scheme, where people bought tulip bulbs simply to sell them at a profit, for much more than there obvious real value. Not that I was around at the time,but that is what I have been led to believe. The new buyers of tulip bulbs (the bigger fools)were needed to pay the existing bulb owners. (the smaller fools). Another Classic ponzi scheme is Bitcoin of course. Nothing like vodafone , because vodafone shares have a real value as you own part of a company. You of course may think vodafone shares are over priced, but to describe them as a ponzi investment, is as you well know complete nonsense. Over valued perhaps, but not ponzi. For vodafone to be a ponzi scheme the shares would need to priced at about 100+ times there real value, but if the sp kept rising, more people would still invest & sell at an even higher price.. Having said that, the whole stock market, banks, insurance companies, fiat currency,only survive because of new money being pumped in, to pay out on demand, so by your simple definition, they could all be described as ponzi schemes. If everybody wanted to take there money out of a bank at the same time, the bank would collapse. It is all about what assets are behind the investment. With Bitcoin, there is nothing. With tulip bulbs not a lot, but with vodafone a vast amount of course.