Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : International Heritage (IHIN) -- Ignore unavailable to you. Want to Upgrade?

To: Arcane Lore who wrote (409)	4/26/1998 6:04:00 PM
From: Arcane Lore	Read Replies (1) \| Respond to of 454

Some interesting quotes from Peter Vander Nat (FTC economist) as cited in: sfgate.com "89 percent of the people in a pyramid scheme lose some or all of their money." "It's the nature of the scheme that the people lower down pay the people higher up. There may be hundreds of people in the beginning who will get paid. Indeed, in the beginning it is very good. But at some point, the growth will stop. The market becomes saturated." "And when it does, all the people at the base of the pyramid, which mathematically amounts to 66 percent percent of the people in the pyramid, won't have anyone to recruit. Thus, they will lose all their investment. Those on the second to the last level, about 23 percent of the total, will get some money, but generally not enough to cover their own investment." "In our experience, when you tally up fees, stock and salaries, the organizers of the pyramid end up with 90 percent of the money." More details on the FutureNet story can be found at: ftc.gov