Bolingbrook takes out bonds to pay for bonds. Bolingbrook takes money from the tax payers to use like personal money for the elected officials. From stocking liquor bars for their own pleasure and free drinking, to investment properties that fail, but are used as a local hangout for elected officials, to funding large campaign chests.
Banks and individuals are making a ton on bonds that have interests that keep being pushed off. They are the one's making all the money here, other then the elected officials. The flow of money to the Village from tax payers keeps growing, as services are dwindling. Yet, high paid contractors are getting enough padding to donate to million dollar campaign funds of the elected officials kicking them the gigs. Everyone is getting rich, except the tax payers who are paying into this. Now the earnings are less then the payments to the investors, so has this Ponzi Scheme ended or will it continue regardless?
This is the definition of Ponzi Scheme:
A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors, not from any actual profit earned by the organization, but from their own money or money paid by subsequent investors.
The Ponzi scheme usually entices new investors by offering returns other investments cannot guarantee, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors to keep the scheme going.
The system is destined to collapse because the earnings, if any, are less than the payments to investors.
You tell us... is this a Ponzi Scheme?
Ultimate unraveling of a Bolingbrook Ponzi scheme.
ReplyDeleteThe catch is that at some point one of these things will happen:
The Mayor will vanish, taking all the remaining money (minus payouts to investors already made). (Hey, we know about your island get a way!)
Since the scheme requires a continual stream of investments to fund higher returns, once investment slows down, the scheme will begin to collapse under its own weight as the Mayor an board starts having problems paying the promised returns (the higher the returns, the greater the risk of the Ponzi scheme collapsing). Such liquidity crises often trigger panics, as more people start asking for their money and reduction of taxes. (Hence this web site was built right?)
External market forces, such as the sharp decline in the economy cause many investors to withdraw part or all of their funds; not necessarily due to loss of confidence in the investment, but simply due to underlying market fundamentals. Once one demands payment, or stopping to services adn donations, all will. (Like we saw with the union debate earlier last year).
Looks like we are already collapsing.
Eventually it all has to come down. Practices like these are what is preventing the US from recovering from the recession. Everyone wants to sweep the problem under the rug and perpetuate the "rob Peter to pay Paul" mentality.
ReplyDeleteBingo! This article hits the nail on the head. Bolingbrook is indeed a huge ponzi scheme.
ReplyDelete