| 4. The House-buyers
Pyramid Scheme page 58
In the UK The Fair Trading Act 1973,
the Pyramid Selling Schemes Regulations 1989 plus
Amendments 1990, outlawed ‘Pyramid Selling’
with unlimited fines and a 2 year prison sentences.
There is one aspect of such illegal
Trading Schemes that interests us here.
With a Pyramid Scheme, unlike traditional
retailing, there was often no set retail price.
Thus a product would be sold on with each buyer/seller
gaining their profit as the product moved down the
chain. When demand peaked or the persuasive power
of a vendor dried up or the price of the product rose
above reality, the collapse of such Schemes was inevitable.
The wise or devious had left earlier
with their fortune intact and possibly enhanced.
The gullible were left without any fortune at all
– and many with huge looses to pay off.
We all need somewhere to live
and many of us join the ‘house-buyers pyramid
scheme’.
We hope that the boom will carry on long enough for
our own purchase to move out of negative equity. When
the economy turns down the market will grind to a
halt with few first time buyers coming in at the bottom.
Prices can crash and some latecomers may find that
they are jobless, homeless and heavily in debt.
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