My thoughts on…Cash Plus
When it came on the scene about five years ago, Cash Plus was a godsend for Jamaica’s poor. Finally, the wealth that was controlled by the elite could be had by the poorer masses. One could invest and reap and interest rate of 10% per month, a lot more attractive than the typical bank, whose rates range from 4%-5% per annum (if I’m not mistaken). Of course there were others like Olint and LewFam, but Cash Plus was the star, mainly because it made a lot of high profile investments in the country.
I remember thinking to myself the very minute I heard about Cash Plus, aside from wondering how they got those mindblowing interest rates, is that it would be a threat to the traditional banks. And indeed it did become a great threat. People drew their life savings about of traditional banks and put it in these unregulated “investment clubs.” Some sold valuable assets such as houses and cars to find money to invest. The banks began to take notice. At first, the banks’ assault was subtle. Suddenly ads appeared on the airwaves asking investors if the organization they were investing in was licensed, if the investment was too good to be true and they knew the level of risk they were taking (which made me laugh, as one does not acquire wealth by playing it safe).
As time went on, the ads appeared more frequently, but people didn’t bite. The prospect of your money doubling and then some within a year was too great for the common man to resist, even people who didn’t have a clue what the word FOREX even meant. The banks then stepped up their campaign, and asked for some political intervention, but nothing was done. I’m guessing because they had some money in their too. They are a greedy lot after all. The banks then closed the accounts of these schemes, refused to accept cheques from them and threatened their workers with unemployment if they didn’t close accounts they had in these schemes.
Though this was a serious blow, it wasn’t long before they recovered. I was rooting for Cash Plus up to this point. Then I read an Observer article about Carlos Hill’s shady past. After that, I didn’t know what to believe, whether Cash Plus was legit, or a just another Ponzi scheme. My father was willing to invest, pushed by myself and his friends who had invested. But after that article, my mother and I asked him to reconsider. He’s still interested, but too unsure to make a move.
Now the FSC has barred Cash Plus and other investment schemes, handing them all cease-and-desist orders. I’m also hearing rumours that Cash Plus is in debt. I’m still unsure of what to think of Cash Plus. Is it a revolutionary scheme genuniely interested in developing the country and distributing wealth run by a benevolent man, or an elaborate Ponzi scheme feeding on the desperation of Jamaica’s poor run by an unrepentant con artist? And while the FSC would like to been seen as serving the interests of the people, it doesn’t take a genius to see whose interests they’re really serving. After all, this is business, and money is the object.
Personally i don’t think it’s wise to include your family business in your post, this little paragraph is what i’m on about “Though this was a serious blow, it wasn’t long before they recovered. I was rooting for Cash Plus up to this point. Then I read an Observer article about Carlos Hill’s shady past. After that, I didn’t know what to believe, whether Cash Plus was legit, or a just another Ponzi scheme. My father was willing to invest, pushed by myself and his friends who had invested. But after that article, my mother and I asked him to reconsider. He’s still interested, but too unsure to make a move.”, but if it’s by your parents to say that, then by all means.
Anyhow, i selected you and your blog as one of my tops blogs for 2007 check out the post here:http://www.gordonswaby.com/2007/12/29/the-best-of-2007-the-motherload/
I am not familiar with this. But one thing I’ve learned with money, if it sounds too good to be effective, you will get screwed.
Don’t worry Gordon. I don’t post anything on my blog that I wouldn’t talk about in casual conversation. Enemy, I agree.
How can you be rooting for Cash Plus? Are you crazy? Some guy, who nobody has heard of before, suddenly appears on the scene (and can disappear just as suddenly), promises people 10% per month, and doesn’t reveal how he intends to make this money. Yeah, that is going to work out fine.
I personally think the government is very brave (and very stupid) to get involved in this, they are just setting themselves up to be blamed WHEN things go bad.
cp mainly brought to light the fact that traditional banks suck
screw traditional banks
I have three choices for the bulk of my savings…under my mattress….a community “partner” as we call it in Ja..or CASHPLUS!
Yes, traditional banks do suck (in soooo many ways), but a bank is not really the place to invest your money. Any financial expert will tell you, if you want to invest for the long term, the stock market is the way to go.
Am with enemy if it sounds too good to be true…it is. 100% returnsa cannot be sustainable
dont make no damn sense.. but in all honesty.. i dunno it working for some so w/e.. i sure as hell wont invest in it though.. not happening.
OK this is my first comment as ’nuffcrap’ for the new year…yes GS i will be writing again
cant say as to what i think of cash plus cuz i have to remain impartial but nice to know you writing about it…
I have been telling people not to invest and they curse me off saying it’s because I work for a bank. I concur with Stuart. Putting your money in a Savings account in bank is not the way to go if you want to make money. You need an investment portfolio to do that, and the stock market is one very good option if you have the appetite for risk.
My only regret is that I didn’t put some $$ in CP from 2003 when I 1st heard about it. I woulda nice now and coulda take out all my money before di crash.
This is just history repeating itself. This is exactly what happened before the financial crash in the 90s when the barrage of merchant banks came on the scene offering higher interest rates.
All those crazy people selling their car and taking 2nd mortgage on their house, etc. … crazy crazy people. I’ll pray for them all.
[...] If you’re a Jamaican, then you already know what’s the hottest thing on the airwaves. That’s right. Cash Plus, and the case of the amazing disappearing funds. If you’re a Jamaican that invested money in said entity, well, sucks to be you. The once beloved investment club that was famous for giving poor people a chance to “step up inna life” has been revealed to be nothing more than an elaborate scam. Normally I’d point and laugh at the fools who weren’t wise enough to look before they leapt, but people’s lives were destroyed by Cash Plus. For those who are late to the party, check this post. [...]