TL;DR
Trump Media’s new ETFs look suspiciously like a self-enriching scheme, echoing past financial disasters. Everyday investors, like John, risk losing everything while insiders profit.
Story
John, a retired teacher, dreamed of a peaceful retirement. That dream evaporated overnight thanks to Trump Media’s latest venture.
Trump Media filed to create ETFs, essentially baskets of investments, tracking Bitcoin and various US sectors. Sounds legitimate, right? Wrong.
They simultaneously awarded one million shares to key cabinet members like Kash Patel, the prospective FBI director. This reeks of insider trading. Imagine getting a million-dollar “gift” right before launching financial products. It’s like dealing yourself a royal flush in poker.
‣ ETF: Exchange Traded Fund - Like a pre-made basket of stocks, bonds, or other assets you can buy or sell like a single stock.
‣ Insider Trading: Trading stocks based on non-public information - It’s illegal and rigs the system against regular investors.
This setup mirrors past financial meltdowns. Remember Enron? Executives enriched themselves while employees’ retirement accounts vanished. The 2008 crisis? Banks gambled with other people’s money, leaving taxpayers to foot the bill. History doesn’t repeat itself, but it often rhymes.
John, like many others, bought into the hype. He lost his life savings. This isn’t just about numbers; it’s about shattered dreams, broken trust, and the erosion of financial stability.
Trump Media is essentially printing their own money and handing it out to their cronies while using your money to prop up their scheme. It benefits them while you hold the bag. This isn’t capitalism; it’s a thinly veiled scam.
This isn’t about politics; it’s about protecting yourself. Remember Madoff’s Ponzi scheme? This feels eerily similar. Don’t fall for the buzzwords and promises.
‣ Ponzi Scheme: A fraudulent investment operation where early investors are paid with money from later investors, creating an illusion of profit.
This case underscores the dark side of unchecked power and regulatory loopholes. Who’s really benefiting? Certainly not John, and likely not you.
Advice
Don’t invest in anything you don’t understand. Research before you risk. If it sounds too good to be true, it probably is.
Source
https://www.reddit.com/r/wallstreetbets/comments/1ij9x4p/trump_media_files_to_create_etfs_using_the/