CheckEmoji Community · the emoji forum
🏠 Home 🆕 What's new ❓ Unanswered 🔥 Popular 📡 RSS Members 👥 0 online
log in · register
Home › Society › Economy › Lost $10 million on Bloomberg.

Lost $10 million on Bloomberg.

Started by coastalridge64 · · 👁 6 views · 21 replies

📡 Subscribe to replies

Participants coastalridge64Bradley Phillips35Andrew Booth29Gregory Williams7David Williams7Nicholas Turnernimblesurfer77Timothy Castillo6goldentinker79Carol Ruiz8hiddenbearNathan Newman3Bradley Walker88hiddenridge34
coastalridge64 coastalridge64 Active MemberOP
90 messages
joined Oct 2011
#1 ·
"A few hundred American investors have fallen prey to a new twist on the old Ponzi scheme tied to Bloomberg, the global currency market. After pouring in anywhere from $50,000 to several million dollars, they’ve collectively lost roughly $10 million."

My question is, what exactly is Bloomberg, and how does it actually function? And more importantly, how do people even find themselves investing in something like this in the first place?
Bradley Phillips35 Bradley Phillips35 Member
30 messages
joined Jun 2008
#2 ·
Bloomberg is essentially currency trading.

You also have leverage, which lets you trade positions that are X times larger than what you actually put down...

That’s how you can rake in massive profits, but it's also how you end up losing way more than you intended...

I used to mess around with this stuff on demo accounts just to see how it worked...

But these people got absolutely wrecked because someone promised them they'd trade their money on Bloomberg and pay out all the gains... 🤣
Andrew Booth29 Andrew Booth29 Regular
338 messages
joined Mar 2012
#3 ·
Yeah, it’s a textbook Ponzi scheme. 😍
They dangle a 100% annual return in front of you just to grab your cash... and sure, for a little while, they might actually pay out those "profits." But that only works as long as the influx of new investors stays ahead of the payouts being sent out. Since the number of people on this planet isn't infinite—obviously—every single one of these setups is eventually going to hit a wall and collapse. 😁
Gregory Williams7 Gregory Williams7 Active Member
144 messages
joined Mar 2014
#4 ·
The reason is simple: we are dealing with a closed system. Because the parameters are limited, the entire process can be streamlined.

Yet, I had someone on another thread trying to insist that this was an open system.
Andrew Booth29 Andrew Booth29 Regular
338 messages
joined Mar 2012
#5 ·
I’m not entirely sure what you mean by a "closed system" that can be simplified.
What this article is actually describing is nothing more than a textbook Ponzi scheme—they were just grabbing cash and burning through it, without ever actually investing a dime.
Besides, Bloomberg or currency trading is essentially a "negative-sum game"—meaning, when you look at the math, everyone loses in the end, while the brokers are the only ones guaranteed to walk away with the loot. 😁
If you strip away the commission fees, then you're looking at a "zero-sum game." For every dollar one person gains, someone else has to lose it.
David Williams7 David Williams7 Member
10 messages
joined Jul 2009
#6 ·
Zero-sum game
Bradley Phillips35 Bradley Phillips35 Member
30 messages
joined Jun 2008
#7 ·
Andrew Booth29 said:I’m not entirely sure what you mean by a "closed system" that can be simplified.
What this article is actually describing is nothing more than a textbook Ponzi scheme—they were just grabbing cash and burning through it, without ever actually investing a dime.
Besides, Bloomberg or currency trading is essentially a "negative-sum game"—meaning, when you look at the math, everyone loses in the end, while the brokers are the only ones guaranteed to walk away with the loot. 😁
If you strip away the commission fees, then you're looking at a "zero-sum game." For every dollar one person gains, someone else has to lose it.

But on this losing side, you've got corporations and everyday Americans who can actually afford to take a hit from currency fluctuations....

That creates an opening for traders to turn a profit, though they claim only 5% succeed... honestly, that success rate is pretty much identical to playing the stock market...
Nicholas Turner Nicholas Turner Active Member
125 messages
joined Oct 2010
#8 ·
coastalridge64 said:"A few hundred American investors have fallen prey to a new twist on the old Ponzi scheme tied to Bloomberg, the global currency market. After pouring in anywhere from $50,000 to several million dollars, they’ve collectively lost roughly $10 million."

My question is, what exactly is Bloomberg, and how does it actually function? And more importantly, how do people even find themselves investing in something like this in the first place?

Stainless Steel, where did you dig up that quote? If it isn't too much trouble, could you drop a link? I actually have a buddy who was just preaching to me about Bloomberg—I'd love to have some ammunition to rub in his face. 😂
Andrew Booth29 Andrew Booth29 Regular
338 messages
joined Mar 2012
#9 ·
Bradley Phillips35 said:But on this losing side, you've got corporations and everyday Americans who can actually afford to take a hit from currency fluctuations....

That creates an opening for traders to turn a profit, though they claim only 5% succeed... honestly, that success rate is pretty much identical to playing the stock market...

Wrong. The rest of the world isn't even playing this game. 😁
coastalridge64 coastalridge64 Active MemberOP
90 messages
joined Oct 2011
#10 ·
Nicholas Turner said:Stainless Steel, where did you dig up that quote? If it isn't too much trouble, could you drop a link? I actually have a buddy who was just preaching to me about Bloomberg—I'd love to have some ammunition to rub in his face. 😂
nimblesurfer77 nimblesurfer77 Member
31 messages
joined Mar 2009
#11 ·
Nicholas Turner said:Stainless Steel, where did you dig up that quote? If it isn't too much trouble, could you drop a link? I actually have a buddy who was just preaching to me about Bloomberg—I'd love to have some ammunition to rub in his face. 😂


It wasn't just regular people losing their shirts on the NASDAQ—it was the very guys who were supposed to be managing that money who ended up vanishing with it. Typical.
Timothy Castillo6 Timothy Castillo6 Active Member
148 messages
joined Apr 2010
#12 ·
And who's really to blame here?

Nobody but themselves. 🙂
goldentinker79 goldentinker79 Member
23 messages
joined Nov 2003
#13 ·
Timothy Castillo6 said:And who's really to blame here?

Nobody but themselves. 🙂

Spot on. Honestly, I’ve never felt a shred of sympathy for pure human stupidity or greed. It’s just hilarious how there is always—always—a market waiting to exploit human foolishness. Whether it's some shady acting scandal, the 2007 housing bubble, Madoff's mess, or messing around with the NASDAQ... it never ends. I’d bet my life savings that these gold certificates are going to end up in the exact same dumpster fire.
nimblesurfer77 nimblesurfer77 Member
31 messages
joined Mar 2009
#14 ·
goldentinker79 said:Spot on. Honestly, I’ve never felt a shred of sympathy for pure human stupidity or greed. It’s just hilarious how there is always—always—a market waiting to exploit human foolishness. Whether it's some shady acting scandal, the 2007 housing bubble, Madoff's mess, or messing around with the NASDAQ... it never ends. I’d bet my life savings that these gold certificates are going to end up in the exact same dumpster fire.


What does any of that have to do with how they lost their money? They were robbed, plain and simple—they didn't just lose it on the things mentioned above. Personally, I don't have an issue with it; I pick up a few shares here and there with a little pocket change, mostly on overseas exchanges—things like pharma or medical supplies. Good intel goes a long way. But yeah, regarding the greed part, I agree—everyone wants the cash without actually putting in the work.
Andrew Booth29 Andrew Booth29 Regular
338 messages
joined Mar 2012
#15 ·
For heaven's sake—if someone actually tries to sell you on a 100% annual return, just run. Don't look back, don't hesitate, just get out of there as fast as you can...
goldentinker79 goldentinker79 Member
23 messages
joined Nov 2003
#16 ·
Do you ever just sit back and wonder... you know... if these people promising 100% returns actually stop to think about it? I mean, if they really have the magic formula, why on earth would they bother working for anyone else? 🤣
Andrew Booth29 Andrew Booth29 Regular
338 messages
joined Mar 2012
#17 ·
I mean, do we really need to break out the calculator here? It’s simple math—if you’re pulling a 100% annual return on $10,000, you’re looking at $320,000 after five years... or a staggering $10,240,000 after ten. 😁
Carol Ruiz8 Carol Ruiz8 Newcomer
5 messages
joined Mar 2009
#18 ·
Here’s a solid piece of writing regarding the reality heading our way:

The credit keeping American families afloat over the last decade is starting to look a lot like those fraudulent brokerage statements from Madoff's era. This level of debt only holds up as long as China continues to recycle its capital through this massive Ponzi scheme. However, if the Chinese ever decide that holding onto the US Dollar as global currency and US debt is simply too much risk, the whole system is going to collapse.

You could even argue that we’ve all been thrown into the cell right alongside Madoff because of this credit-driven Ponzi scheme. Let's just hope our sentence is shorter than his...

The US Dollar as global currency: The Ponzi scheme involving the United States and China

In short, every currency is headed for the bottom, and soon...
hiddenbear hiddenbear Newcomer
2 messages
joined Jul 2009
#19 ·
Why does this headline have to be such a total downer? It could’ve just said:
A few hundred American investors blew $10 million on training courses. 🤷 🙂
Nathan Newman3 Nathan Newman3 Member
16 messages
joined Mar 2012
#20 ·
hiddenbear said:Why does this headline have to be such a total downer? It could’ve just said:
A few hundred American investors blew $10 million on training courses. 🤷 🙂

People like that never learn...

Option B) if they’d actually earned that money fairly, they never would've let it get tied up in something this sketchy—but hey, that's just how it goes, right?

You must log in or register to reply here.

Log in Register

🔗 Similar threads