This would require cryonics companies to lie about their finances. Otherwise they have no way to extract money from their reserves without alarming customers.
Banks have been lying about their finances for years. Cryonics companies would hardly be unusual in the current economic climate if they were lying about their finances. I have some AAA rated mortgage backed securities for sale if anyone’s interested.
To be clear, I actually don’t think cryonics companies are scams. I just think that if you wanted to set up a scam, cryonics would be a promising avenue.
I think the complexity thing is overblown for banks to be honest. If you believe the MSM you might get that impression, but credit default swaps, collaterized debt obligations, mortgage backed securities and the rest of the TLAs behind the financial crisis are not actually difficult to understand for anyone with a basic grasp of maths. The idea that such instruments are fundamentally complex largely stems from the mathematical ineptitude of most people in the media. If you have trouble understanding the concept of percentages then a credit default swap probably seems quite confusing.
It seems very unpromising indeed to me. Could you explain how you’d pull it off? Would you publish falsified accounts, for example? Bear in mind that you’re competing with existing providers and operating in a community which talks to each other; if existing providers think you’re a scammer, they will say so, and they are polite about each other.
Scam is perhaps a little strong, but it does seem like a perfect Ponzi scheme. The basic idea of a Ponzi scheme is that you can pay off your existing investors with the proceeds from new investors, as long as your existing investors are happy with your annual reports of profits.
Cryonics promises an indefinitely deferred payoff—you pay into the fund now for a chance at a huge payoff sometime after you die. As long as you can sustain a positive cash-flow you never have to pay out from the fund. People won’t get suspicious for quite a while—you can always claim you don’t want to risk damaging your charges by subjecting them to experimental revival procedures. If you don’t believe in what you’re selling you’ll be (permanently) dead before anybody gets suspicious. Meanwhile you will have enthusiastic customers evangelizing you based on their huge ‘paper profits’ - they’ve paid you a paltry $300 a year for the promise of eternal life.
If Bernie Madoff could get away with cooking the books for 20 years in one of the most heavily regulated industries in the US with the relative handicap (compared to cryonics) of actually having to pay out on occasion then it is at least plausible that a cryonics company could be a profitable enterprise for someone who did not believe in cryonics. Of course, if it is easy to verify that they are storing brains in liquid nitrogen it doesn’t necessarily matter if it’s a scam.
I’d publish legal accounts. If I get to play by the same accounting rules as a ‘too big to fail’ bank then I wouldn’t call them honest accounts.
You actually don’t need to do anything illegal or even that morally questionable to make good money from an insurance business. People pay you to hold their money. It’s why Warren Buffet loves insurance companies:
The Power of Float
The source of our insurance funds is “float,” which is money that doesn’t belong to us but that we temporarily hold. Most of our float arises because (1) premiums are paid upfront though the service we provide—insurance protection—is delivered over a period that usually covers a year and; (2) loss events that occur today do not always result in our immediately paying claims, because it sometimes takes many years for losses to be reported (asbestos losses would be an example), negotiated and settled. The $20 million of float that came with our 1967 purchase (National Indemnity- NICO) has now increased—both by way of internal growth and acquisitions—to $46.1 billion.
Float is wonderful—if it doesn’t come at a high price. Its cost is determined by underwriting results, meaning how the expenses and losses we will ultimately pay compare with the premiums we have received. When an underwriting profit is achieved—as has been the case at Berkshire in about half of the 38 years we have been in the insurance business—float is better than free. In such years, we are actually paid for holding other people’s money.
(emphasis mine)
Cryonics seems like a pretty great source of ‘float’.
This would require cryonics companies to lie about their finances. Otherwise they have no way to extract money from their reserves without alarming customers.
Banks have been lying about their finances for years. Cryonics companies would hardly be unusual in the current economic climate if they were lying about their finances. I have some AAA rated mortgage backed securities for sale if anyone’s interested.
Banks hide their deception not only in actual secrecy but also in overwhelming complexity.
To be clear, I actually don’t think cryonics companies are scams. I just think that if you wanted to set up a scam, cryonics would be a promising avenue.
I think the complexity thing is overblown for banks to be honest. If you believe the MSM you might get that impression, but credit default swaps, collaterized debt obligations, mortgage backed securities and the rest of the TLAs behind the financial crisis are not actually difficult to understand for anyone with a basic grasp of maths. The idea that such instruments are fundamentally complex largely stems from the mathematical ineptitude of most people in the media. If you have trouble understanding the concept of percentages then a credit default swap probably seems quite confusing.
It seems very unpromising indeed to me. Could you explain how you’d pull it off? Would you publish falsified accounts, for example? Bear in mind that you’re competing with existing providers and operating in a community which talks to each other; if existing providers think you’re a scammer, they will say so, and they are polite about each other.
Scam is perhaps a little strong, but it does seem like a perfect Ponzi scheme. The basic idea of a Ponzi scheme is that you can pay off your existing investors with the proceeds from new investors, as long as your existing investors are happy with your annual reports of profits.
Cryonics promises an indefinitely deferred payoff—you pay into the fund now for a chance at a huge payoff sometime after you die. As long as you can sustain a positive cash-flow you never have to pay out from the fund. People won’t get suspicious for quite a while—you can always claim you don’t want to risk damaging your charges by subjecting them to experimental revival procedures. If you don’t believe in what you’re selling you’ll be (permanently) dead before anybody gets suspicious. Meanwhile you will have enthusiastic customers evangelizing you based on their huge ‘paper profits’ - they’ve paid you a paltry $300 a year for the promise of eternal life.
If Bernie Madoff could get away with cooking the books for 20 years in one of the most heavily regulated industries in the US with the relative handicap (compared to cryonics) of actually having to pay out on occasion then it is at least plausible that a cryonics company could be a profitable enterprise for someone who did not believe in cryonics. Of course, if it is easy to verify that they are storing brains in liquid nitrogen it doesn’t necessarily matter if it’s a scam.
So you’d publish honest, or at least non-fraudulent, accounts?
I’d publish legal accounts. If I get to play by the same accounting rules as a ‘too big to fail’ bank then I wouldn’t call them honest accounts.
You actually don’t need to do anything illegal or even that morally questionable to make good money from an insurance business. People pay you to hold their money. It’s why Warren Buffet loves insurance companies:
(emphasis mine)
Cryonics seems like a pretty great source of ‘float’.
You’ve said so once. This second instance is thus an attempt at proof by repeated assertion. Actual reasoning would be preferred.