Think about how much you can earn in a year with an investment of only $10,000. If you invest $100,000, or even more, it only takes 14 weeks, just a few months! You'll break even in less than three months, and the remaining nine months will be pure profit.

Sister Wang's persuasive words did indeed tempt Su Ya.

In addition, it was also related to her field of expertise, so I decided to give it a try by throwing some money at her.

"I don't have that much money. I'll ask my boyfriend for some when I get home tonight," Su Ya said.

"Don't tell him about the investment yet. Give him a surprise when you make a profit, and let him see that women know how to make money too," Sister Wang said with a smile.

Despite the promises of profitable investments, Su Ya wasn't that naive. She had ten thousand US dollars and didn't need to borrow it from Xing Baohua.

He can readily produce over a million dollars in cash; otherwise, he would have spent hundreds of thousands of dollars on shopping these past few days.

If you have no money, what's the point of even walking the streets?

Not having money was just an excuse; she wanted to go back and ask Xing Baohua about the investment and its structure.

Market risks exist; investment requires caution.

I've heard this saying many times, but when it actually happens to me, it's easy to be misled by small details, and perhaps greed has already taken over my reason.

Xing Baohua rarely takes time to spend with Su Ya, so this time the two flew to Miami to enjoy the beach and sunshine there.

Enjoy two days of vacation.

Su Ya was talking about this with Xing Baohua.

Xing Baohua praised, "I didn't expect you to be so cautious. You didn't listen to that guy's nonsense. Ten thousand or even a hundred thousand is basically just throwing money away. At most, you'll see a few weeks of rebates."

"So what exactly is this mode?"

“Pyramid scheme, a Ponzi scheme, a fraud model disguised as finance.” Xing Baohua sat up from the beach chair and drew a pyramid shape in the sand for Su Ya with his finger.

This is the top of the pyramid, the first generation. He needs to develop three people to get a high return of 5%.

Then, these three people recruit three more, and on the third level, there are nine people.

If each level has three people developing three more, it won't take many levels to reach a massive scale of several thousand or tens of thousands of people.

The 5% that the upper class receives is the $10,000 base investment that the lower class invests.

So, the person who designed this structure would have a plan to run away with the money after it has been developed to a certain number of levels.

We have no choice but to move! The further down the chain we go, the harder it is to develop. If we can't get new funds to replenish our resources, then the money from the higher-ups will have to be paid out every week.

They're scammers to begin with; of course, they won't take money out of their own pockets to make up for their losses. They'll just run away, find a new place, or change their identity to continue their money-making schemes.

"Isn't this a scam?" Su Ya's question struck Xing Baohua as both cute and naive.

In the financial world, how many businesses don't lie? If they didn't lie, how would they make money?

They just vary in size.

Xing Baohua didn't dare explain to Su Ya that there were even more sophisticated methods. He had been making money recently, even luring in experts like Lehman Brothers.

Others are better; they see through things but don't say anything, and they don't play along.

At least she didn't become a troublemaker, while Xing Baohua did indeed cause trouble for that woman called Sister Wang.

Her method will lead to many products and many ways to play.

In China, the most direct name for it is "Chuan X".

The most outrageous thing is that they sell even half a brick at the price of gold. Those people are just stupid enough to sell half a brick.

Slightly better ones change the name to "direct selling," but that's not the same as real direct selling at all.

The business model is still a pyramid scheme, and the quality of the products sold is relatively reliable. Moreover, they proactively apply for business licenses, which is why companies like Amway, Perfect, and Lion have emerged.

Amway was one of the first companies to operate in a proper and orderly manner, following our framework. Its ultimate goal is to sell products and obtain a lifetime pension.

More than a decade has passed, and no one knows what happened to Amway's lifetime contract system, nor has anyone mentioned it.

This thing is indeed very harmful, and in the end, they even used the guise of job hunting to lure people to attend so-called conferences.

Having understood the pattern, Su Ya didn't ask any more questions. The two relaxed and enjoyed their time together.

After returning from Miami, Xing Baohua went back to the branch office to take charge.

His only job now is to study charts and economic matters with the analysts he hired.

The marketing department and the information department all assisted Xing Baohua and his analysis team by providing them with information from various aspects.

All marketing staff were deployed to conduct substantive investigations.

"Are you unemployed? How much welfare are you receiving? What's your opinion on the current economy? Are your mortgage and car loan payments a lot?"

These are all people the marketing department is researching, to understand some basic information.

Of course, in order to obtain this data more quickly, Xing Baohua also sent gifts, such as chocolates, bread, butter and other daily necessities.

The report can be obtained for free simply by participating in the research. In this situation, it's not just Chinese people who are greedy for bargains; Americans are the same.

This firsthand information also has a significant impact on the stock market.

Banks are facing a credit crisis.

Unemployment rates can lead to mortgage and car loan defaults, which are the result of a gradual accumulation of a credit crisis. When this accumulation reaches its peak, it can trigger a major stock market crash.

We can't see a clear direction yet. We can only leave the actual data to the analysts for analysis.

After the credit crisis came the subprime crisis.

This is the most serious crisis. If the credit crisis is a small mushroom, then the subprime crisis is a giant mushroom.

My dear reader, there's more to this chapter! Please click the next page to continue reading—even more exciting content awaits!