Time for some proper due diligence/ independent auditing in our communities

[yawn]

https://www.theyeshivaworld.com/news/general/2256295/mailbag-im-begging-you-stop-setting-your-money-on-fire-two-more-ponzi-schemes-unfolding.html

[Afrages6]

https://www.theyeshivaworld.com/news/general/2256295/mailbag-im-begging-you-stop-setting-your-money-on-fire-two-more-ponzi-schemes-unfolding.html

So yeshiva world is basically reporting Ponzi schemes through the mailbag these days?
Clever way to do some reporting without actually reporting the Ponzi schemes.

[Tuna Baygel]

https://thelakewoodscoop.com/news/letter-enough-with-all-the-ponzi-schemes-how-to-put-an-end-to-it/

[Definitions2]

https://thelakewoodscoop.com/news/letter-enough-with-all-the-ponzi-schemes-how-to-put-an-end-to-it/

It's posts/letters like these that I find very conflicting when it comes to hashkafa.

To me it seems like the person believes 100% that this can be prevented if we would do XYZ. How does this work hashkafically?

Also why isn't it a simple halacha question. I don't know halachos of lashon hara but a simple question to anybody that knows the halachos can answer this.

(Out of my own curiosity, when it comes to LH do we have to be worried about side effects of saying lashon hara, like family members being affected? Why is that a factor? Just because someone else might do something wrong [like not wanting to be friends/married into a family of the perpetrator] we have to worry about saying lashon hara on someone else?)

[yuneeq]

It's posts/letters like these that I find very conflicting when it comes to hashkafa.

To me it seems like the person believes 100% that this can be prevented if we would do XYZ. How does this work hashkafically?

1. A person that is destined to lose money can have this carried out in many ways. Unfortunately, far too often this occurs via theft and deception from fellow Jews.

2. A person can be blessed with money but he also has the free will to blow it all. Many of these investments are in that category.

[aygart]

https://thelakewoodscoop.com/news/letter-enough-with-all-the-ponzi-schemes-how-to-put-an-end-to-it/

Somehow these people are hearing about a Ponzi a week and I am not.

[Euclid]

Somehow these people are hearing about a Ponzi a week and I am not.

you're hanging out with the right crowd

[aygart]

you're hanging out with the right crowd

Sounds like that is the real solution for the issue

[jye]

a real headache

When it rains it pours

[yelped]

When it rains it pours

You're talking about that one lawyer who decided to have a big mouth? She can't be sued for defamation?

[yawn]

You're talking about that one lawyer who decided to have a big mouth? She can't be sued for defamation?

That was the rain. But it's also pouring.

[yelped]

That was the rain. But it's also pouring.

Then I'm out of the loop.

[ushdadude]

Scammers are terrible but if people weren't greedy, they would have nobody to scam. I mean, guaranteed 25% returns???

[Something Fishy]

Scammers are terrible but if people weren't greedy, they would have nobody to scam. I mean, guaranteed 25% returns???

Probably more like dumb, naive, or desperate.

Or all three.

[ushdadude]

Scammers are terrible but if people weren't greedy, they would have nobody to scam. I mean, guaranteed 25% returns???

Probably more like dumb, naive, or desperate.

Or all four

FTFY

[knowitall]

I've spoken with many people who were scammed that were just plain old naive.

Once you are financially literate, you understand what the risk-free rate is, where investment grade corporates are, what you can reasonably expect to earn in equities over a long period of time, etc. Only after you understand that, do you realize that any investment promising returns over that, is much more risky or speculative, and likely using leverage as well.

Don't assume that everyone knows 25% is not a normal return for a safe investment. I've had many calls with financially illiterate folks who were shocked when I mentioned what they can reasonably expect annually from an "aggressive" portfolio. 

[yfr bachur]

I've spoken with many people who were scammed that we're just plain old naive.

Once you are financially literate, you understand what the risk free rate is, where investment-grade corporates are, what you can reasonably expect to earn in equities over a long period of time, etc. Only after you understand that, do you realize that any investment promising returns over that, is much more risky or speculative, and likely using leverage as well.

Don't assume that everyone knows 25% is not a normal return for a safe investment. I've had many calls with financially illiterate folks who were shocked when I mentioned what they can reasonably expect annually from an "aggressive" portfolio.

THIS.

I wouldn't consider myself very financially literate (I'm a regular kollel guy, just I took economics in 11th grade  ) but I have explained/pleaded/begged at least three friends and relatives out of investments that I was able to see through in minutes.

[aygart]

I've spoken with many people who were scammed that were just plain old naive.

Once you are financially literate, you understand what the risk-free rate is, where investment grade corporates are, what you can reasonably expect to earn in equities over a long period of time, etc. Only after you understand that, do you realize that any investment promising returns over that, is much more risky or speculative, and likely using leverage as well.

Don't assume that everyone knows 25% is not a normal return for a safe investment. I've had many calls with financially illiterate folks who were shocked when I mentioned what they can reasonably expect annually from an "aggressive" portfolio. 

If they think it is a normal return for a safe investment then why don't they invest it in one?

[Saver2000]

If they think it is a normal return for a safe investment then why don't they invest it in one?

They do. They think the offer being presented is a safe investment.

[haltkup]

Spill the story so it can be debated, lessons learned, or just plain hock, or don't bother sharing at all.