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One trick looks through all the Pondicherry scams - the formation, development and demise of bubbles and the magic of compound interest.

Nearly asTiehui article在Unexpected popularity on the Internet, a large number of people came to me, asked me a lot of questions about so-and-so company, so-and-so financial product is not a scam. Sadly, almost all of my friends who come to me have been exposed to a variety of scams, some involving more than a billion dollars.

Interestingly, the scams are almost invariably variations on ponzi schemes.

A ponzi scheme is a scheme in which the operator promises the victim a high interest rate, but in fact does not add anything to the value of the scheme.

For example, one trader claims to be able to return investors 10% a month. The first victim invested $1 million, while the operator did not invest in any of the projects. And then the next month, he takes $100,000 of the money that the new investor paid the next month and gives it to the first investor.

The first investor gets the interest purely from other new investors, but the first investor does get the interest and tends to believe the authenticity of the investment. After receiving the promised high interest rate for several months in a row, the victim begins to gather friends to join the "rich" group. So the ponzi scheme can survive.

Of course, we know that this scam will eventually come to an end without real value programs to back it up.

Then how to identify an investment project, is it a ponzi scheme?

In fact, the most obvious feature is abnormally high interest rates.

That's the rate at which wealth grows, if you have a 10% return, and you end up with a big bang. If the 10% monthly return is true, then the second year, or the 24th year, will be 9.8, which is close to 10 times.

In just half a year, by the 30th month, it's 17.44 times. At the end of three years, it's 31 times that.

If you invest $1 million, you should get $31 million in 3 years.

If you're going to leave a legacy to your children and grandchildren, 10% a month, give 20 years to your children who just started working, so they don't have to work hard for money and they can choose their career.

If you invest 10,000 yuan now, 240 months from now you will get a return of 8.6 billion times, which is 86 trillion dollars of wealth, which is equivalent to the total GDP of the United States last year. You just put in $10,000!

At this point, you should understand that 10% of the monthly return of investment opportunities will not actively seek you.

There are opportunities in the world for a 10 per cent monthly return, but there will be a cap on capacity because the market has shock costs. That is to say, if more people use the same strategy, the asset that the strategy needs to buy will have price fluctuations at the same time, so that it cannot be bought at the price required by the strategy.

For Wall Street hedge funds, annualized returns of more than 20% are enough. For tuhao, the growth rate of their wealth will only slow down. 20% is already fast.

At this point, it's pretty clear. If someone promises you a 10 percent or higher monthly income, they should know what to do.

Warning you again:Nothing comes from heaven