TL;DR
Trump’s latest move—creating ETFs and awarding stocks to political allies—raises serious red flags. It’s a potential recipe for disaster for unsuspecting investors, echoing past financial scandals.
Story
Trump Media’s ETF filing and stock awards stink of corruption. Let’s break it down:
The Scheme: Trump’s company wants to create ETFs, supposedly tracking Bitcoin and various sectors. They’re also handing out massive stock awards to key political figures.
‣ ETF: Think of it like a basket of stocks you can buy/sell as a single unit. Problem is, who decides what goes in the basket?
‣ Stock Award: Basically a gift of company shares. In this case, it looks suspiciously like a bribe.
Why It’s Fishy: Imagine a president creating their own currency and giving it to their allies. This screams conflict of interest. Are these stocks payment for past favors or future loyalty? Who really benefits?
The Victims: Everyday investors, blinded by Trump’s name, could pour money into these ETFs, only to see it vanish when the scheme collapses—like a house of cards built on hype.
‣ Conflict of Interest: When someone’s personal interests clash with their professional duties. Think a judge ruling on a case involving their family member.
Déjà Vu: Remember the 2008 financial crisis? Or Enron? This reeks of similar hubris and disregard for regulations. History doesn’t repeat, but it often rhymes.
Red Flags:
- Promises of easy money.
- Celebrity endorsements.
- Lack of transparency.
- Conflicts of interest.
The Takeaway: If it sounds too good to be true, it probably is. Do your research, be skeptical, and don’t fall for the hype.
Advice
Don’t be fooled by big names or promises. Investigate before you invest. Remember Enron.
Source
https://www.reddit.com/r/stocks/comments/1ija2vu/trump_media_files_to_create_etfs_using_the/