Saturday, April 4, 2026 
Ponzi Finance Simplified
Ponzi finance is when you declare your dividend and lower your dividend, by diluting your shareholders, all in the same day. The company does not want to come out and say that they can’t pay their dividend. So they declare a diluted dividend. “We are declaring our dividend, and you hereby receive 40% in cash and 60% in shares.”
This is a delay tactic. It delays the inevitable. The more they dilute shareholders, the higher the probability of default. This is another example of The Oldest Trick in the Book. It is exactly what Vornado Realty (VNO) did today.
To refinance or not to refinance
Below is a chart of the rate on the 30 year T-Bond ($TYX). Rates cannot go a lot lower. The question is not IF you should refinance. The question is CAN you refinance? If you can, then you should. This window won’t be open long. If you can, you should.
Peace
30 year yield
Ponzi vs. Fonzy
http://bailoutfail.com/?p=31
Comment by rusty — January 14, 2009 @ 6:41 pm
[...] hilarity of it all. The shell game has come to an end. Now, they may pull the same thing that Vornado Realty did. Should we pay less than we said we would or should we pay less than we said we [...]
Pingback by Which Ponzi Finance Should They Use? | Trade the Picture — February 3, 2009 @ 12:28 am
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