If you've heard about the recent Bernie Madoff scheme where over $50 billion has been taken from investors, you know what a Ponzi Scheme is. If not, here's a brief video for you which explains it:

Basically, the schemer pays returns to investors with money from subsequent investors. Normally, it falls apart and the schemer is exposed. Here are two cases of Ponzi Schemes that are still existent and legal.

Ponzi Scheme #1 - House Flipping
This one is interesting in that it is a distributed ponzi scheme, there are multiple schemers. Think of the recent real estate bubble in the process of correcting itself. All of those people that "invested" in real estate as this bubble grew, flipping houses to make money, were contributing to the scheme. They were all schemers trying to make easy money. (To clarify, by house flipping I'm referring to those people that purchase houses on speculation that the price will increase, slap on a coat of paint and sell it as recently remodeled.) Sadly, the victims in this scheme were those that purchased and still own the homes purchased at over-inflated prices. I'm not currently aware of any legislation or pending legislation that will prevent or even discourage house flipping in the future.

Ponzi Scheme #2 - Social Security
This one is especially disturbing because we are all victims of it and are required by law to "invest" our money. By 2017, Social Security will have to pay out more in benefits than it receives in taxes. Sound familiar? Current workers are paying into a a Ponzi Scheme that will not be able to pay them back when it comes time for them to retire. I'm not counting on Social Security funding my retirement and neither should you. I just wish there was a way to opt-out of this one.

I just finished "Crash Proof: How to profit from the coming economic collapse" I must admit, it was a very interesting read. Published in 2007, Mr. Schiff does a pretty darn good job predicting the burst of the real estate bubble. More alarming, he's predicting the collapse of the dollar. I'm a bit surprised that the dollar hasn't lost more value through the recent economic turmoil.
He goes through and explains what's been happening to mask current inflation and what you can do to come out ahead when all this comes crashing down. Unsurprisingly, his company (Euro Pacific Capital, Inc.) specializes in the kind of stuff he's suggesting you do to protect your wealth. He also explains how to do it on your own (without Euro Pacific.)
Anyway, I strongly recommend you read this book. It offers a unique perspective on what's going on all around you in the financial world.

For you locals (in Salt Lake) here's a link to the book from the library's website.
For everyone else, here's a link to the book on Amazon.

If you're running a small business or are thinking of starting one in the near future you should take advantage of this deal. Quickbooks Pro 2009 Edition for free from Staples after mail in rebate:
$199.99 Reg. Price
- $40 Instant Savings
- $159.99 mail-in-rebate
= FREE!!!

Today only!

I've told you before and I'll tell you again, Stop using Internet Explorer. If you haven't heard the news from earlier this week read this article. There are huge flaws in Internet Explorer, this one has finally been fixed.
"It's a remote exploit that gives the attacker compete control," said Michael Argast, security analyst for Sophos. "It's the most critical type of flaws that can exist. It's one of those drop-dead scenario's where you've got to fix it."

If you're looking for alternatives, I recommend Firefox. Others that come highly recommended by my friends include Chrome and Opera.

If I catch you using Internet Explorer on your computer, I can't quite say what my reaction will be. It will probably something between a strong-worded scolding and kicking your computer down the street and into the trash because it will be better off there.

I got these Dell coupon codes in the mail and won't be able to use them before they expire (on Dec. 17) Go for it!

Save $350 on Latitude and Vostro laptops - DT24JGR1DPMW0L

30% off most Dell color laser printers - 9$F6JPHGJ0DJS?

20% off most monitors, TVs, and desktop & laptop accessories - 4VR8602$R7?NT7

Please post a comment if you use one so others don't waste their time trying to use them...

www.dell.com

We just got a bounced check back from our bank for a Checker Auto mail in rebate we had deposited. Apparently, Continental Promotion Group has filed for Chapter 11 bankruptcy protection. I love it that we were hit with at $5 fee on a $12 check because it bounced.
I found this news story that explains how Costco is dealing with the situation. To summarize, don't deposit your rebate check unless you talk to the store where the rebate originated first.

According to this AP article, Detroit CEOs save more than $15k by driving instead of flying to Washington D.C. One thing they neglect to factor in is the time required to drive. The 14+ hours of CEO travel time saved by flying is valued at $0 according to the article.

Is their time worth more than $1k/hr? I don't know, but mine is definitely worth more than $0/hr.

First of all let me say - I'm a good driver (yeah, we all think that.) I'm alert. I drive the speed limit (which sometimes drives my wife crazy.) I've only gotten 2 tickets in my life and the last one was over 7 years ago (it's amazing what having kids does to you.)
I started riding a motorcycle this year and it has been a real eye opener to how many bad drivers there are out there. I'd like to share what I've learned with you.
On a motorcycle, you don't have a big metal frame to protect you in case of an accident. In an accident you always lose. As a result, I'm much more alert and aware of what other drivers are doing. I try to be ready for worst case scenarios as I'm driving and give myself plenty of space between me and other vehicles.

As I'm paying closer attention to driver behavior, I have found that about 85% of the time someone was driving like an idiot poorly, they were distracted by talking on their mobile phone. I have decided to reduce my cell phone usage while driving even further. I already don't use my phone much when I'm driving so it won't be too big of a stretch. An officer in traffic school (over 10 years ago) reminded me that when you're driving a car your primary responsibility is driving, everything else is secondary. Pull over if you need to yell at your child pick up that toy for your child. Don't think you can turn around and do it while you're driving because you're a good driver.

Drunk drivers have always angered me. I'd think to myself, "How can they think it's a good idea to get behind the wheel while they're drunk?" But I've come to better understand one of their justifications. It goes something like this, "I'm such a good driver that I can handle it." The same justification goes for those who talk on cell phones while driving. Many studies have shown that talking on a cell phone is as dangerous as drunk driving (here's one.) By the way, 80% of drivers think they're above average - hmmm, you do the math on that.

Here is my pledge to drive with fewer distractions:

1. I will not talk on my phone while driving unless I'm doing it hands-free and even then I'll use discretion.
2. I will never compose or send text messages while driving.
3. I will not even look at my phone unless the driving situation is low risk (i.e. no nearby cars, not residential area, not approaching intersections, ...)

Obviously, I will take exception to these rules in case of an emergency. Me running late for an appointment is not an emergency.

What this means to me:

• I'm going to be a safer driver on the road.
• I might be yelling/gesturing/honking at you if you're driving like an idiot and have a phone up to your ear.
• My chances of making it home alive have increased dramatically.

What this means to you:

• If you call me and I'm driving, I may not answer. Leave a message or send me a text message, it's nothing personal.
• One more driver out there is more aware of what's going on and less likey to be in an accident with you.
• I challenge you to do the same and remove or reduce any distractions you have while driving.

Thanks for letting me rant a little and I hope you take a moment to think about how you can be a safer driver.

Here's a quick video on the tanker crash near my sister's home. There are a few short snippets of their interview with her.

I was just made aware that Dr. Pepper will be giving away a free 20-ounce soda to anyone that wants one. This according to their promise to give a free soda to everyone in America if the Guns N' Roses album, "Chinese Democracy" was released in 2008. The album goes on sale Sunday.
Beginning Sunday at 12:01 a.m. coupons for your free soda will be available on Dr. Pepper's website.

Original news story here
I'm not much of a Dr. Pepper fan (I'm more of a Dew man), but I'll take a free soda. Thank you very much.