Wednesday, February 27, 2008

Greedy Investers Get The PIP

Adolf has absolutely no sympathy for greedy investors who bought BlueChip's PIP product without bothering to take independent legal advice. Neither do I have any sympathy for the idiots who paid deposits of $135k and signed an authrity releasing those funds to BlueChip from day one, also without taking independent legal advice.

I heard about them (the PIPs) the day they were launched and recognized them for what they were. A desperate bid by a cash strapped company to buy itself some time as it looked for new Peters to rob in order to pay Paul.

Having said that, in the interests of balance, I hope the SFO manages do nail the oleaginous Bryerlcream and send him off for a long holiday.

Update: Adolf's educated guess has something like $15 mil to $20 mil worth of PIPs land mines exploding around the country during coming days


Barnsley Bill said...

I was wondering when you would get around to commenting on Blue rip again Adolf. You might recall we commented on this a while ago where I mentioned these PIPs.
They have all lost all the money they invested/loaned and will now have to pay for these properties.
The whole blue chip saga will go down as the biggest rip off in this countries history. The tactics employed would see Money Managers blush.
Finance company rip offs see savings lost. This situation has seen borrowed money vanish. There will be some hot bargains to choose from by the end of the year, your mate FFM needs to hold his parents cash for a few months yet methinks.

As an aside I was in Auck on Monday and caught up with a couple of acquaintances who have spent the last couple of years as Blue Chip "investment advisers". They have all started again with newly formed companies, they have just duplicated the model and have begun again. Their take on the situation was incredulous shock and claimed not to know what was happening in the background. Frankly even though neither of them are very bright I still think they are lieing sacks of shit who should sleep with one eye open.

Cactus Kate said...

Isn't it marvellous how people will risk their largest asset in something sold basically over the phone or at a seminar without understanding the downside?

The same kinds who think paying $10K for legal advice or a professional opinion is too much.

You can't protect people from their own stupidity and neither should you. Punters deserve to lose their money if they are this stupid.

I mean who the HELL buys non-luxury (or even luxury) apartments in Albert Street and Pitt Street?? Just one walk around the block there should be enough to put you off.

They just saw the one cashflow spreadsheet from the projected rental and this ultimate NZ property dream thing and went "YES".

My bet is that the salespeople didn't even have to lie.

Adolf Fiinkensein said...

An extremely astute last line, Cacrus. I heard the PIPs were sold out in a matter of days.

Anonymous said...

Fuck Cactus Kate's last line, the rest is better.

Have Keewees not learned anything? FFS, Mum and Dad are so gormless when it comes to finances they think that being offered 14% on property deals when finance companies are falling like packs of cards is safe.

No worries mate, we'll buy the thing back off you before settlement. You won't have to settle.

Oh sweet, thanks. I'll take 7 please. Do i get fries with that?