How FC financing works for BIG, page-333

When this first started going down I didn't believe there was even a slight chance this was a ponzi-like scheme. As time has gone on it looks more and more like it may be. The thing that sways me on this is that getting info on the FCC arrangement has been like pulling teeth.

I didn't think it was a scheme because they were sure to get caught. So what I've been pondering this morning is this question, "If it is a ponzi, then how did they think they would escape?" I can't figure it out.

It seems that it all got away from them when BIG started eating up the loan facility too quickly. It's come to a head only about 4 or 5 months after it was formalised. Best I can figure in that hypothetical scenario is that they thought they would be mildly inflationary on the share price, they could sell the shares for more than they would have to write off, and then BIG would wean off the FCC arrangement, taking a hit in price but not blowing up in their faces.

Or possibly they would run the Australian business hard enough to attract an American financing arrangement that would keep the ball rolling and that's where they would make their cream. And it just went boom a little too quickly.

I dunno. I still don't think it's an actual deceptive scheme. They would inevitably get caught. They always do. I can't think how someone would believe such a high profile setup would go unnoticed.