Monday, December 9, 2013

Scams

The “cash-rebate-after-savings” marketing maneuver is a scam for consumers who pay full price for something; consumers get a portion of the money back after the Corporation has had the use of the money interest-free for at least 30 to 60 days before the rebate. Stockholders get all the benefit of the investment (a form of subsidy to the Corporation) and consumers take all the risks. The item purchased loses its value immediately and the consumer ends up on the short end. That sounds to me like an old-school shell game: a fraud generating interest-free loans for Corporations in order to hide their tax-free capital gains. In other words, "the large print giveth and the small print taketh away."

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