And let's not forget the Wall Street firm Golden Sacks, who bought much of the stock at the IPO (Initial Public Offering) and sold it as its price was going up to its clients, making both a profit and a commission on every sale while making bets on the company failing (and the stock dropping) by buying Credit Swap Defaults, an unregulated form of insurance. The stocks sales, the Credit Swap Default sales, and all the other money transactions were included in the Government's Gross Domestic Product figures, indicating great wealth being produced. If you divided the amount of money being reported to the government by the number of American Citizens, it showed that there was an increase in America's Annual Gross Domestic Product Figures of over $5 per person, but what was actually created? Nothing! In fact, 9 stamps were destroyed. And the clients fooled by Golden Sacks and the working people who's 401k's had money invested in funds that bought USA Manufacturing Inc stock all lost money, but the CEO of Golden Sacks and the CEO of USA Manufacturing Inc. both made out like(?) Bandits and many of the stock traders at Golden Sacks received huge bonuses to go with their already ample salaries and commissions all derived from the destruction of 9 stamps.
That could never happen. Right?? Not in America! Right?
That's the long version. The short version for using on web-sites with a 250 word limit is:
A rich man started the
USA-Manufacturing Corporation and bought the last 10 stamps of a rare
variety at auctions, investing $10,000,000. USA-Manufacturing went
public and sold 49% of its stock for $4,900,000. During the first
quarter of its operation, USA-Manufacturing built no factories, hired
no workers, but burned one of its 10 stamps and the remaining scarcer
nine stamps' appraisal increased from $10,000,000 to $12,000,000. The
first quarter's earning report beat the stock analysts' expectations
and USA-Manufacturing's stock's value rose to $15,000,000. In the
next quarter, they burned another stamp, the remaining eight stamps
were worth $15,000,000 and the stock's total value rose to
$20,000,000. After 2 years of quarterly stamp burnings,
USA-Manufacturing had earned(?) 30,000,000 (on paper) and with a P/E
of only 10 was worth $300,000,000. In the ninth quarter, the CEO
burned the penultimate stamp, leaving the last stamp with a value of
$45,000,000 and the stock's value was $450,000,000. The CEO sold his
51% for $200,000,000 and collected his annual salary of $20,000,000
(retroactively), raised by selling the last stamp, leaving
$5,000,000. USA-Manufacturing declared chapter 7 and $5,000,000 was
spent on liquidation.
Wall Street's Golden-Sacks, bought the stock at IPO and sold it as its price increased, while betting against the company buying Credit Swap Defaults, an unregulated form of insurance. The transactions were included in the GDP, but what was actually created? 9 stamps were destroyed. Stock clients lost! The CEO's of Golden-Sacks and USA-Manufacturing got richer, and stock traders received huge bonuses.