: Hey boss, congratulations! I knew you’d become an executive in record time!
: Thanks buddy! Now, could I borrow some money from you?
: Not a problem. How much?
: About 1200$.
: Er… you know I don’t have that much cash lying around. I pay for two families.
: Yeah I know. I don’t need cash though. Your credit card will do. Your line isn’t anywhere near maxed out. Besides, you know the rules around here. If I use your card, I’ll pay the bills in full before the due date.
: Alright, boss.
This is a paraphrasing of a conversation that took place between me and my boss mid-last year. They knew that my credit card limit, a little above 5000$, was almost entirely unused. That’s because they were involved in getting me that line in the first place.
The boss took about 2000$ in loans from my credit cards, always paying back in full. He was making a killer RoI of about 80~85% within two months. And, despite that, I didn’t invest myself. Why?
Let’s see what my boss did. There were several online marketplaces giving up to 50% discount on high end electronic products and motorcycles. The only catch was, delivery would be delayed up to 45 days in the best case scenario. So, the boss would order 10-12 motorcycles from various marketplaces at half the market price, choose on-store pickup delivery and flip the bikes back to the store for about 90% the market price. The bikes didn’t even move an inch, but boss still made an unbelievable profit this way.
Now, let’s see what the online marketplaces did. They would take orders for said bikes at half price through a campaign. But they wouldn’t have enough cash to cover the cost of the bikes. About a month later, they’d launch a similarly insane price campaign. This would cause an influx of new orders. Now they’d have enough cash to cover the cost of first campaign orders. They’d pay it to the distributors of said bikes, who would then deliver the bikes to the first campaign customers, while the second campaign customers waited for their delivery. It was a *ponzi scheme* orchestrated by a group of 15-20 online marketplaces.
This insanity went on for about two years. The hole in the balance sheet of those marketplaces got bigger and bigger, until they were unable to pay anyone. Then, finally, the government finally stepped in. They shut the practice down, and arrested some people. My boss bailed out just before that, taking home a hefty profit of about 25000$. He even gifted me three shirts and a pair of pants as thank you for my loan. But from media reports, I know for a fact that millions who had greedily invested their life savings or borrowed money, still haven’t got their investment back yet, and probably never will.
I left my job soon after.
The content was posted by pooraudiophile1 on 2021-09-25 16:25:38 via reddit