Keeping cool in crowded Churchgate Borivali Train

One of my teacher once told me “last punch in boxing which knocks out the competitor – is the most important and best punch in the game“

What my teacher was trying to say is that we do lot of task with enthusiasm and towards the end we take it easy. Best approach is – end should be as good as beginning.

This is the last blog post of this year and I better write it good.

Situation:
Rush hour; Charni Road to Borivali; fast train; heavily crowded; an annoying man in front of you who is arguing and fighting with everyone for smallest reason; and he just got in to argument with you;

Keep Your Mind cool in Mumbai Trains

How do you feel about this disturbed and angry person?

Do you get angry on him and start screaming as loud as him?

You are really not of mind to do something like this but this guy is so annoying that you loose control.

Let me share one beautiful story with you and wish that next time you find this annoying guy in train, you will not loose your mind.

<Story Starts>

A beautiful peaceful spring afternoon in English country. On a lake side there are couple of people seating and reading newspaper and having nice time. All of sudden one man comes to this park with two kids and sits on one bench. This man sits quietly. Kids start making noise, throwing stones here and there. They disturb each and everyone who was peacefully enjoying the beautiful day. All of sudden a serene afternoon turns in to noisy chaos. While all this is happening father of two kids who were doing all mischief is seating quietly, lost in his thoughts. It seems like he doesn’t really care what kids do.

An old man seating on next bench gets very angry seeing this. “what the hell. Kids are disturbing everyone but this man doesn’t even care to say anything to these kids. This is so irresponsible. This is so unethical.”

This old man loosing his control walks to this mans and in a loud voice expresses his anger and frustration. “Gentleman you should say something to your kids, they are spoiling everyone’s peaceful afternoon” .This old man is so angry that he is ready to fight and throw this man out of that area.

This dad of two kids who was lost in his thoughts completely, wakes up. “oh what happened? Actually I am just coming out of hospital and my wife passed away 5 minutes back and I have no idea what to do next? I am so sorry. Are kids giving any trouble?”

Listening this old man instantly forgets all his anger. In 2 seconds angry old man turns in to sympathetic and caring. He tells this man “I am so sorry to hear that. I am so sorry for the kids. Is there anything I can do to help?”

<Story Ends>

Moral of the story: we see people behaving in certain way and we create a perception for them. However if we know what really happened in his life which makes him act the way he or she is, then your perception will change. Next time you see a frustrated annoyed man in Borivali fast train. Think of this story. Do not loose your mind over him. God knows what really happened in his life which makes him so restless.

And with that we end our last blog post of the Year 2010.

Also let me tell you how to nicely end this year like a knock out punch in boxing. This story was taken from a book named “7 habits of highly effective people” this book is sold on each and every railway station book store – buy one copy before 2010 ends and give your best last punch of the year.

It’s OK to be a Fool but not a Greater Fool

I have a relative who will buy anything in stock market. Sometimes sound businesses and many times risky junk stocks.

He gives me example of ‘raddiwala’.

In Hindi or Gujarati we call junk as ‘raddi’. I am sure all the old newspapers and magazines from your house goes to some local raddiwala.

greater-fool-theory-diamondbhai

Why do you think your raddiwala buys your old newspapers every month?
Because he knows that someone else is waiting to buy same junk paper for higher price.

Who are fools?
People who buy something not because they believe that it is worth it, but rather because they believe that they will be able to sell it to someone else at an even higher price.

(fool is really not a fool but a smart guy, however ‘greater fool’ is realy a fool. Confused? Keep reading)

Most of the people believe – it is valid way to make money by participating in momentum or flow. “it doesnt matter how good or bad the product is, all I care about is rising price and buyer who will take it from me”.

Price continues to rise and one day market participants realize that the price level is too high and the speculative bubble pops.

Fools are happy till they find greater fool who will help them to get reed of the product.

Fools will find some greater fool till the time there is optimism in market and flow in market.

Who is greater fool?
greater fool is the fool who tried to behave like all other fools but couldn’t find a fool who would give higher price.

Greater fool is all over the place. When we partcipate in markets looking at optimism and momentum, make sure you are not the last person in the chain.

DiamondBhai.com is 3 months old

It’s been already 3 months we started DiamondBhai.com and it looks like yesterday. To summarise what really happened at this blog in last 3 months.

Chetan Parmar, founder of DiamondBhai.com - "Thank you for all help and support!"

In all we have total 42 posts/articles.

9 – are Interview posts
33 – are General knowledge sharing posts.

Let me take this opportunity to once again Thank first 9 Guests who gave chance to give Interview. I deeply appreciate all the help and support you have shown for this new website.

Chirag Patwa , Hemant Thaker, Digesh Vora , Dilip Gajera , Maulik Parekh , Premal Patel , Rahul Panday , Rajesh Mehta , Kaushal Patel .

We got many suggestions and questions in last 3 months. Below are 3 questions asked by more then one Diamondbhai.com visitor:

Q 1) Almost every other post is talking about ‘Loss making’  or ‘Loss Management’ . Why so pessimistic?
Ans) True! We are strong believer in Warren Buffet’s secret of making money – “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”. Since Indian Economic Indicators and markets are very close to multi-year highs, we are going to talk about not getting greedy, but to stay humble and fearful.

Q 2) Are you experienced enough to make comments on Business process in your blog?
Ans) Posts on diamondbhai.com are inspired from ideas shared by some of well respected people like – Leaders, Business leaders, Economists, Psychologist etc.  None of these ideas are original. I try to write and package it in a way – so that people in Indian Diamond market can relate to it closely.

Q 3) How old are you?
Ans) I found this question strange, but got this question from multiple people. I am 26 years old, born on 1st April. (Exactly! No one takes my birthday seriously because of April fool’s day)

What’s Next?
Many people like diamondbhai.com and number of visitors are growing every single day. I will continue to publish Interviews and general business posts. And if there are any suggestions from readers – I will add them to my action list.

You can help DiamondBhai.com grow in following ways:
1) Subscribe your email [takes less than 5 seconds]
2) Visit Diamondbhai.com Facebook Page and Click ‘Like’ button [takes less than 5 seconds]
3) Call me or SMS me – let me know what you think about DiamondBhai.com [takes less than 60 seconds]
4) drop a comment on blog [takes less than 20 seconds]
5) Give Interview [I record your answer on my balckberry – takes less than 10 minutes – I translate it and publish interview]
6) Write Guest posts [if you have something in mind you want to share – call me – I will record your voice – translate and publish post]

Thank you once again to all readers of DiamondBhai.com for first 3 months of this exciting journey. This has been one of the best 3 months in my career.

How fast do you adopt new changes?

There is a theory named ‘Diffusion of Innovation‘ which explains how, why, and at what rate new ideas and technology spread through cultures. When any new product or service is introduced in real world – it is not accepted immediately by everyone.

There are few people who adapt new things in life very quickly and there are many who wait for everyone else to use the product and then decide to go for it.

Adoption Curve - Which group do you belong to ?

The graph shown here explains category of people and speed in which new product gets adapted.

As seen in graph: Line shows rate at which one person influences next person to adapt a new product.

For example: New Android phone gets launched in market. Very few will go and buy it in first week. Many will not buy it for long time.

A new Aamir Khan movie gets released. Few will buy ticket in advance. Few will wait for reviews in newspaper. Many will wait to hear from friends about quality of movie. Hence many will watch it only after hearing something good about it from others. If they don’t hear good – they will end up watching it later on DVD or TV channel.

diamondbhai.com blog is also good example. It creates a platform for members of Indian Diamond market and allows to share ideas and thoughts. Few will say “wow! This is cool. I want to join the movement”. Many will say “Not bad! If lot of people start talking abou it then may be I will decide to check this website again”.

There are characteristics of people who fall in different categories of Adopters – however these are generalised category there are always exceptions (We usually find youngsters more tech savvy but I know an uncle who is 50+ and he knows about every new Phone-handset that comes in market. When I hear about some new thing, I talk to him and he tells me how good or bad is this device).

Innovator Group:
Risk Takers, usually younger, willing to take chance, not afraid to invest time/money for new thing, socially mobile and involved.

Early Adopters:
Unlike Innovators they don’t take risk, they do research, and then perseve new things. These are also know as Opinion leaders. These people have credible and provide advice and balanced feedback.

Innovator and Early Adopters try lot of things, not all they try reach to next level.

Early Majority:
They are focused on actual use of idea rather then the concept. They will take part only they find a concrete reason. They don’t get excited seeing new things like Innovators and Early Adopters. They talk to opinion leader and get their recommendation.

Early Majority is the game changer – if you want your product or service to succeed – you want your product to get adopted by Early Majority. Once product crosses this category, product will see lot of success in rest of its life.

Late Majority:
They have same thought process has Early Majority except for they don’t like to use new things unless it becomes standard thign to do. they are late majority to the party and they want to make sure that they have lot of help available when they start using the product.

Laggards:
They fear of new things. They will use product only if it becomes necessary or it becomes part of some existing product. For eg: they will move from windows xp to windows 7 only if they buy a new laptop and windows 7 was already installed in it. They will never upgrade to windows 7 on an existing laptop which has windows xp running.

People who design new product and service never worry too much about laggards for obvious reasons.

So next time you see some friend buying a new idea or product – think of innovation curve and try to analyse which category does he fall in to. Also if you are planning to start new service or launch new product think about innovation curve and design your product so that it easily climbs the innovation curve.

Interview with Kaushalbhai Patel

Surat can be called manufacturing hub for Diamonds because over 35 DTC Siteholders are members of Surat Industry. Every site holder has office and factory in Surat. In last 40 years Surat has achieved unbelievable Industrial success. Our guest Kaushalbhai Patel likes Surat and asks jokingly that “how about moving whole Mumbai market to Surat?“.

Kaushal Patel, Diamond Assoter at H. Hiralal

How did you start yours career in diamond industry?
I started my career in 2003 in Mumbai diamond market. Learned basics in diamond coaching classes in Charni Road. Worked on contract basis with many companies. Later worked for 3 and half year for K. P. Sanghvi as Diamond Assorter.

Presently I work for a company named H. Hiralal as Diamond Assoter. I also take care of Accounts related activities here.

How was the slow down of 2008 diamond industry?
Slowdown didn’t affect me personally. I was working at H. Hiralal and my employer took care of me. My company didn’t face much problem due to slowdown like many other companies. I was hearing about lot of companies going out of business, cutting jobs, deduction in salary etc.

Whom do you consider as mentor in diamond market?
I Don’t consider any single person as my mentor in diamond industry. However I take lot of inspiration from whole industry and keep lot of ambition to do good in market.

What changes you have seen in last few years in Indian diamond Industry?
Overall diamond business is growing but for for small diamond manufactures things are slowing down. They are loosing business day by day. Big companies which are well established are growing bigger. Local people are not able achieve what they want & not able to make enough profit in their profession.

If you get a chance to change one thing in diamond market what would that be?
I would like to shift whole Mumbai diamond market to Surat (Gujarat). Surat is the biggest hub in whole world, lot of manufacturing happens there. I would like all import and export related activities are done done in Surat. That will make Surat a complete base.

Do you want to give any message to DiamondBhai.com readers?
Heera hai sada ke liye (diamonds are forever)

Economic Bubble at Tea Stall near Pancharatna – Part 2

This is continuation of earlier blog “Economic Bubble at Tea Stall near Pancharatna – Part 1” If you have not read Part 1 – you will not get this post.

Week later – there are rumors in market that scientist from Nasa did research on Tea masala and found it can be used in space for Astronaut diet. Now everyone else who didn’t buy shares yet – are ready to buy it. If Japanese company likes it, NASA likes it – there must be something extra ordinary about this Proprietary tea masala.

Bubble Burst

Next day market opens – shares reach – 120 rupees – Now we have people who are buying a business-share worth rupees 12 for 120 rupees. It will take 10 years to break even since annual earnings are 12 rupees.

3rd week – Ramdeo Baba tells on Astha channel that Tea masala from “Shree Bhavani Tea Multinational” has 5000 years old ancient ayurvedic qualities and everyone should use it.

Next day shares reach 200 rupees.

4th week – there is breaking news on NDTV – Barkha Dutt reports that Walmart executives were seen at the tea stall and from her sources she got khabar that Walmart is planning to buy distribution rights of Tea masala for multi million dollars.

Next day – stock reaches high of 400 rupees. Around afternoon there are rumors in market that Health Minister are going to review Tea Masala, if found unhealthy, masala will be banned. Stock starts falling, people panic and start selling – that day stock closes at 200 rupees. People who bought stock above 200 rupees are scared to death.

Next morning – State Health minister and State Agriculture Minister – calls all media channel and declares that “overnight study was done in laboratory and tea masala seems to be perfectly healthy” Agriculture minister declares – “100 Acre of jungle near Lonavala mountains will be used for cultivation of herbs used in  Tea masala and this will create job opportunity for 1000 of villagers”

Next day – stock reaches all time high of 600 rupees [now stock is at 600/12 = 50 price per earning] It simply means with present earnings – if you bought stock at 600 rupees, it will take 50 years to reach break-even. But people do not notice any inflated prices – everyone are putting in their life savings and buying shares. This is a once in a lifetime golden opportunity.

Bhavani Shankar decides this to be right time and starts selling his 50 thousand shares. BS sells 10 thousand shares every day and within 5 days he is out of market.

He makes 50 thousand x 600 rupees = 3 crores.

He keeps 1 crore and distributes remaining money to people who helped him create Bubble.

Month later people realize that there is no Japanese company interested in buying Masala; Walmart has never heard of any such masala; Stock falls; People panic and sell stock; Stock is worth less than 10 rupees now; People who bought stock for 600 rupees hold on to their share thinking stock price will come back to 600 someday;

Its proved by now that there was some hidden conspiracy. Opposition party raises questions in Parliament on this fraud case. A joint committee is formed to inquire in to fraud. A notice is sent to Tea company and asked to reply within 60 days. 60 days later – Tea company asks for 120 days of extension to collect proof. Year later tea company submits report on research it had conducted on Tea masala. Tea company still thinks masala has health benefits and asks permission to send sample to laboratory in USA.

Months and years pass – eventually people forget about this company. Only those who took part in bubble towards the end (bought share at 600 rupees) remember this company for rest of their life.

3 years later – a new company goes IPO – this time – a Vada Pav company claiming that their proprietary chutney can help one to loose weight. “Eat chutney for 10 days and loose more then 30 pounds” And of course you read this in one of the leading newspaper.

Economic Bubble at Tea Stall near Pancharatna – Part 1

(Disclaimer: below post is only meant for light informational reading. Numbers and terms are over-simplified for same reason)

Everyone has heard about bubble.
In physics – bubble means a very thin film of soapy water that forms a sphere – usually last for only a few moments before bursting, either on their own or on contact with another object.

Economic-Bubble-Indian-Diamond-Market

In Economics – bubble is a “trade in high volumes at prices that are considerably at variance with real values”. It could also be described as a trade in products or assets with inflated values.

Let’s once again do this in diamondbhai.com style – dramatize the whole explanation in to real world story.

In our story heroes name is Bhavani Shankar (BS). BS is a  hardworking employee in one of leading Diamond Manufacturing company, extremely smart and ambitious. One day frustated with a low paying job – decides to take a tea break. While sipping tea at Tea stall near Pancharatna building he decides – “enough is enough and now I want to do something big”. He decides to partner with Tea stall owner, brand it and launch IPO with name “Shree Bhavani Tea Multinational“.

<simplified numbers>
Tea stall earns – 1 lakh rupees every month   –>    earns 12 lakhs per year.
It means this business is worth 12 lakh rupees in 2010 – 2011.

He decides to create 1 lakh shares in market –> each share for face value 12 rupees.

BS keeps 50 thousand share for himself –> rest are floating in market
<simplified numbers>

Now BS starts working on Bubble creation:

BS gives advertisement in Mumbai Samachar – “Magical health benefit of Tea masala – anyone who drinks Tea from Shree Bhavani Tea stall near Pancharatna building – will never get health problems like Cancer, Blood pressure etc”. Everyone in Diamond market sees the news and ignores it. No one really believes that such a Tea masala exists and is being used by Tea stall near Pancharatna building. Thinks its a joke.

3 days later – a front page article gets published in Gujarat Samachar – a company from Japan is planning to buy Tea masala from “Shree Bhavani Tea Multinational” and open 50 Tea stalls all over Japan. Boom! Everyone is shocked to know this! Is this really happening?! A Japanese company believes it – so it must be true! If some Indian company said this, I would never believe, but this is Japanese company – I should have bought shares of  “Shree Bhavani Tea Multinational” on day 1, but its not too late. I will buy shares tomorrow morning as soon as market opens.

Next day shares of this company opens at 30 rupees and by the end of the day it closes 100 rupees. 12 rupees face value share has reached 100 rupees in few days.

Story will be continued in next blog post…

Interview with Mr. Rajesh Mehta, Diamond Broker

How do you establish Credibility in Indian Diamond market ? Ensure to provide service or product in trustworthy and consistent manner. You need to convey that you will meet the expectations and that the quality of what you provide can be counted on.

Let’s meet a young aspiring member of Indian Diamond market – Rajesh Mehta, who believes trust & relationships are the most valuable assets in market.

Rajesh Mehta, Diamond Broker, Mumbai Diamond market

How did you start yours career in diamond industry?
I use to work in Nagdevi market for a company doing business of Ball-bearing & Cutting tools. In 2001 I started working in Diamond market. In beginning of my career, for almost whole year, I didn’t get any salary. It’s common in Diamond market to find people who started work without salary while they were in learning phase. By the time I had 3 years of experience I was very well skilled and had good position in industry.  Many don’t like the idea of starting career without pay, but from my personal experience I would suggest beginners to accept this condition if they come across good opportunity. In diamond market you have to go through initial struggle phase and it prepares you for a promising future. I was already aware of this situation and kept my focus on learning all skills. Looking back I feel I made right choice and have achieved success at my level.

I have worked in P.Navinkumar (Owner Piyushbhai) worked as Diamond Assorter. I got lot of exposure to marketing activities. I was regularly sent out to supply packets of goods, this gave me chance to meet people in market and build relations.

Presently I work as Diamond Broker and have many associates and friends in Diamond market. My perception of success is the mutual trust I share with people in market. There are many people in market whom I can talk to when I need advice. And in return I am always willing to go that extra mile to help build business.

If not in diamond industry which industry would have worked in?
As I told earlier, I would have continued working in Nagdevi Market (Ball bearing and cutting tool business). However I cannot think of any other industry that would have given me overall career satisfaction like Diamond market has. I feel good to be part of Indian Diamond market.

Where do you see Indian diamond market in the whole world?
Indian diamond is playing a leading role because of strong manufacturing base. I give complete credit to skilled and hardworking workforce we have. I just wish that these hardworking people on the actual manufacturing floor get more rewards for their efforts. Wages are so low that they end up taking second job just to make ends meet. Many decide to switch companies or industry.

Tell us something about your experience in slowdown of 2008 in diamond industry?
During 2008 no one really knew how deep was the bottom and many employers decided to cut jobs. It is easy to look back and speak about how big companies should have avoided job cuts. It is always easy to look at the numbers in past and make statements but no one knew what will happen in 2009 2010 and beyond.  For rich employers probably it was substantial percentage cut in their income, but for individuals at low level loosing job was like giving biggest exam.
Today many of these companies are having tough time to find and retain skilled people. Now many of these people(who faced job cuts) care about their job and but not the Employer.

In last 10 years of your career what good or bad things you have seen in Diamond market?
good thing – I like the way small businesses in Indian Diamond market scale for next level. There are many companies I have seen which started with a small team and humble beginning. As they made progress they hired required people to grow further. If there was need to bring in IT expert they will do that. If there was need to bring someone who does lot of corporate marketing they would hire one. They bring in what business needs to reach next level.
not so good thing – There are companies inside Indian diamond market who have existing business to business arrangement and never give business to new companies. I would request seniors and well established leaders in our Diamond industry to shift their focus from growing their personal company to start playing a community leader role. They should spend time in guiding and encouraging new & young entrepreneurs in market.

If u get chance to change one thing in India diamond market what would that be?
I would request once again to some of the rich and well established people to shift their focus on leading young people and stop worrying about growing richer. There are whole bunch of young and enterprising people in market who are struggling for their career aspiration. If given chance they would put their whole life in to business and come out with good result. Until and unless big giants in our market don’t broaden their aspirations – small people will keep struggling and big companies will keep getting bigger.

Any message for diamondbhai.com readers?
Courage in bad times and Patience will help you conquer everything. It may take some time but sooner or later you get rewards for all the sincere efforts you put in to work at Indian Diamond market or any other industry.

How to Identify a Ponzi Scheme – Part 2

This is continuation of earlier post “How to Identify Ponzi Scheme Part 1”

In earlier post I gave you some basic outline of how Ponzi schemes are designed. Core of such fraud schemes are –

(1) It give a very high rate of interest or reward – which excites people to take part in to the flow.

(2) Use money from new investors to pay interest for whole pool of customers.

Ponzi Schemes

There are several outcomes of such Ponzi schemes:

Situation 1) The whole movement fails when things go bad. For Example:  Ireland as a country is filing Bankruptcy. Stock market all over the world has started diving south. Indian markets are down. Media and newspaper are full of negative news. In such situation people become part of herd and flow what everyone else does. “Even though people are getting 10% per month – I want to withdraw all money and stay on the side”.Out of panic people withdraw money. One who get their money out first will be in good position. Most of them who run late will loose money. Most of the Ponzi schemes go bust when Economy faces some severe crisis.

Situation 2) One fine day owner of the company disappears.  News are out that scheme was a big scam. In short no one really knows where money went.

Does everyone taking part in Ponzi scheme loose money?

No!

Owner of company definitely makes fortune unless he gets caught by Government Investigators at right time.  Investors who made money and walked  out of the scheme while things were good also stay safe. But most of the people get greedy and stay until market takes them out in bad way.

If you ever come across such company – one important thing you want to check is – what is the source of income. If company says that source is stock trading (like Ahmedabad company mentioned in Earlier post) – than ask for Trading records – which stock were bought and sold – ask for daily records on same day – do not accept 3 -4 days old record. In past one Ponzi scheme use to create records after markets have closed – this way it was able to show that it always made profit.

After reading all this if you still decide to take part in such schemes than – here are two most important suggestions:

1) People take part in such Ponzi schemes and then start referring friends and relatives. If you loose your personal money – it’s your personal pain. If your friends and relatives loose money because of you – it will spoil relations for rest of your life.

2) If at all you find yourself already in middle of such Ponzi situation – Exit out when things are good. Usually people tend to get greedy. After seeing a good interest rate earned on money – people tend to stay with the scheme – infact they decide to put in more money in to it.

How to Identify a Ponzi Scheme – Part 1

One of my cousin from Ahmedabad recently called me and spoke about an exciting investment opportunity he came across in his friend circle. Scheme sounded too good to be true. Deposit 1 lakh rupee and get 10% interest every month. Yes every month(not year) – 10 percent/month. It basically means in 10 months I get 100% return and annual rate of interest will be 120%.

120% per year.

As soon as I heard it, first thing I told myself was “Ma kasam” (learned this bad habit from Aamir Khan in Rangeela). I was confident enough that this was a bogus scheme and felt sorry about people who have dumped their money in this company. However I asked for some more details about company and it’s business model.

I was told that there is one guy – who is real world James Bond. He does short term Stock Trading and makes 20% per month. He gives back 10% per month to all clients. This guy has collected about 1000 crores in investment from simple middle class people and against it he has got loan of another 1000 crore from one popular bank (I know the bank name – but don’t want to reveal it) . Now he has converted many existing clients in to his agents. If some agent brings new customer with money then in return you get some percentage extra. This guy gives official stamp paper – promisory note for all the amount you deposit.

I would never put my money with this company, however I was wondering how can people be so fool to take part in something like this. I googled for recent scams and such ponzi schemes and found similar sounding schemes in past which turned out to be fraud.

At the end I said – Ahmedabad rocks!

Unfortunately it’s not just limited to Ahmedabad – it started in Ahmedabad but now people from all over India have invested money in this company.

Let’s assume that if I was owner of this Ponzi scheme company – how would I mathematically run such a business. How would I exist financially?

Here’s solution that comes to my mind:

Ponzi Scheme - Make money doing nothing

For example:
Start with 10 clients – each client gives lakh rupee – collect 10 lakh rupees. Now I have enough money to give 10% to all clients for next 10 months(for each client – 10% of lakh rupee is 10 thousand rupees – every month I would end up paying lakh rupee in interest to 10 existing client). While all this is happening – in 3rd month – some of my existing clients introduces me to a new clients. On 5th month one of the existing client refers his brother, Masa, Kaka, brother-in-law to the scheme – “Bhai I am making 10% for last 5 months – this guy is really good – trust me – just invest some money”. “My brother referred me and he is indeed making 10% per month – let me invest some money”. The cycle continues – new investors bring money for paying interest to existing pool of people.

Everything will work fine until I am getting new customers. I will continue on what are common characteristics of such Ponzi scheme in next blog post.