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I’ve heard of Ponzi schemes before but never has one been talked about with so much interest as the Madoff scandal. The truth is, this Ponzi scheme probably would not have toppled at this time had the stock market not toppled even though Harry Markopolos provided evidence in 2000 of such a scheme.

A Ponzi scheme lures investors with promises of high returns ( if someone offers unbelievable returns or guarantees, beware).  But instead of investments, the big returns come from other peoples money. The company falsifies statements and pays out the returns by luring other victims into the web. Unfortunately, it must stop somewhere, and in this case it should have stopped in 2000, not eight years later. Maybe some of the investors could have been made partially whole. Maybe.

Anyway, my purpose in writing this blog was to highlight something I heard on Dr. Phil the other day. I had never thought about it before, but our Social Security system is one big Ponzi scheme. I’ve been told that I possibly might not be getting social security upon my retirement because the funds won’t be there even though I’ve paid into it for the last 20 years. Definitely a big Ponzi Scheme.

I’m currently reading a non-fiction book on investing. The author suggests you know the managing style of the CEO and trust him or her before investing your money in the company.

If a company has performed poorly the good CEO takes the blame for the failures of the business and tells the shareholders information to help them evaluate the performance and the future for the company.

The bad CEO doesn’t admit to mistakes even though it’s obvious something has gone wrong.

Whether the good CEO realizes it or not, he or she is following a Biblical truth:

Proverbs 28:13 (King James Version)

13He that covereth his sins shall not prosper: but whoso confesseth and forsaketh them shall have mercy.

I believe when you admit to mistakes–sins– you relieve yourself of anxiety.

1 John 1:8-10 (King James Version)

King James Version (KJV)

8If we say that we have no sin, we deceive ourselves, and the truth is not in us.

9If we confess our sins, he is faithful and just to forgive us our sins, and to cleanse us from all unrighteousness.

Confession is freeing.

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