Asked what she understood about the loans, Giosmas says, "Well, unfortunately, I didn't ask too many questions. I mean in the old days, I would shop around. But because of the frenzy, and I was so busy looking to buy other properties, I didn't really focus on shopping around for mortgage brokers."
"But if you're investing in real estate, you're buying multiple properties, you should be asking a lot of questions," Pelley remarks. "Why didn't you ask?"
"I was busy. I was really busy looking at property all the time, all day long," she replies. She also acknowledges that she didn't read the paperwork. Now she’s losing money on every property.
A Ponzi scheme is a fraudulent investment operation that involves paying abnormally high returns to investors out of the money paid in by subsequent investors, rather than from the profit from any real business. It is named after Charles Ponzi.[1] The term "Ponzi scheme" is used primarily in the United States, while other English-speaking countries do not distinguish verbally between this scheme and other forms of pyramid scheme.[2]
The scheme usually offers abnormally high short-term returns in order to entice new investors. The perpetuation of the high returns that a Ponzi scheme advertises (and pays) requires an ever-increasing flow of money from investors in order to keep the scheme going.
The system is destined to collapse because there are little or no underlying earnings from the money received by the promoter. However, the scheme is often interrupted by legal authorities before it collapses, because a Ponzi scheme is suspected and/or because the promoter is selling unregistered securities. As more investors become involved, the likelihood of the scheme coming to the attention of authorities
increases.
The scheme is named after Charles Ponzi, who became notorious for using the technique after emigrating from Italy to the United States in 1903. Ponzi was not the first to invent such a scheme, but his operation took in so much money that it was the first to become known throughout the United States. His original scheme was in theory based on arbitraging international reply coupons for postage stamps, but soon diverted later investors' money to support payments to earlier investors and Ponzi's personal wealth. Today's schemes are often considerably more sophisticated than Ponzi's, although the underlying formula is quite similar and the principle behind every Ponzi scheme is to exploit investor naïveté. However, it has been shown that entering a Ponzi scheme can be rational even at the last round of the scheme if a government will likely bail out those participating in the Ponzi scheme.[3]
Mike and I used to change the lyrics to Earth, Wind & Fire's song September and the phrases we used most were:
Got a cat and skinned her
My best friend's Lucinda-er
Had a Waring Blender
Friends Lisa and Janie gave us a Waring Blender for a wedding present at the kitchen shower they hosted for us in NYC. And I often think of sending them thank you notes randomly, because I use the blender every day. I use it every day and I think of them each and every time I use it. For one thing, it is SUCH a good blender - it crushes ice for margaritas or smoothies - it can handle any job. It was such a nice gift - and I remember thinking at the time that I couldn't believe they would spend so much money! I was so grateful. And it's as sleek and fashionable today as it was in 1997 (those girls have good taste). The shower and party (Doug and I were both there) were so elegant - up to that time, I don't think anyone had ever done anything like that for me. At a time when we really didn't have much, Lisa and Janie did a lot for us.
Lisa went on to host a baby shower for us. Both of these girls were not just at my wedding but in it. Janie's husband David chose and read a beautiful poem (that I have hanging on a wall above my desk)... They have done a lot for me. Much too much.
People would say, that's what friends do. But I don't know if I would - I mean I try to be as good a friend as my friends are to me, but I don't think I ever really make it. I am always astonished and overwhelmed by how dear my friends are - how good they are to me. I don't deserve it.
I am.
Sarah Palin has taken her heels off, apparently, to insinuate a relationship between Barack Obama and a man who was once a leader in the Weather Underground movement. She calls this man, William Ayers a terrorist, but the facts don't hold up.
From CNN:
In the 1960s, Ayers was a founding member of the radical Weather Underground group. Federal charges against them were dropped due to FBI misconduct in gathering evidence. Ayers, 63, is now an education professor at the University of Illinois at Chicago.
Obama campaign spokesman Ben LaBolt told CNN that after meeting Obama through the Annenberg project, Ayers hosted a campaign event for him that same year. LaBolt also said the two have not spoken by phone or exchanged e-mail messages since Obama came to the U.S. Senate in 2005.
There is no indication that Ayers and Obama are now "palling around," or that they have had an ongoing relationship in the past three years. Also, there is nothing to suggest that Ayers is now involved in terrorist activity or that other Obama associates are.
It's laughable to believe that the University of Illinois has a terrorist holding a tenured teaching position. And it's despicable, the lengths to which the McCain campaign will go; when, without much dredging or insinuating anyone could easily make the argument that as a member of the Keating 5, John McCain is the last person we'd want in the White House, given our current economic crisis.