Comment: Right, which is why the scam

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Right, which is why the scam

Right, which is why the scam works. If OWS could give people money to buy their own debt, that would be nice, but then I don't think they would have gotten 400k to do it. And it still would have been a scam, just less of one.

It's an arbitrage scheme like all the others. They create laws and regulations and licensing so only certain people can buy and sell certain products. Then those people are in a position to collect rent on the exchange.

Legitimate free market arbitrage captures geographical and temporal transport costs, like shlepping silk between Asia and India. With the modern miracle of fascism we just invent legislative walls between markets so anyone connected can profit!

So back to the scam, let's say that this is all speculator money, though I'm sure they got some actual rubes to cough up. In order to profit, they only had to make a 3% spread from the purchase of distressed debt to the sale to the OWS.

The reason distressed debt is cheap is because you don't know if you will be able to recover or unload. But with a front like this you can guarantee you can flip the paper and quick.

On top of that, this scam either operates as a non-profit, in which case all the 'donations' are deductible or..

Possibly even better yet, for profit, because then they can probably write off the entire 400k as a loss, if the chain of ownership can be obscured back to the same speculators who fronted the 400k, you're looking pretty damned golden.

Sure this is small potatoes, but it's a perfect example of how those claiming to 'help' the 'little guy' are always scerwing them.