Page 177 - The Circle of Life

ships are all leased thus transferring the risk from the operating company to the

asset owners. Listed company's tend to be the owners of nothing except their
name and shares which may or may not be bulls-t when (not if) the fan hits (you
know what). That fancy high rise tower with their name so proudly on it is

registered in an offshore tax haven company. Same with the shopping malls and

other assets they point out so proudly as being the owner. Their subsidiary
companies may be the owner but they are not in law. Half the time the
subsidiary also owes so much money on the assets that it is useless to sell.

Your worst enemy however must have by law a certain percentage of cash as

security against losses. It is never enough and Mr Average Joe always takes a
loss and you see it on television every now and then. The reason being that your

money is not really kept in a safe somewhere and given back to you on your
request called a withdrawal or transfer of funds in real life! In simple terms it is

mixed with the rest of the tens of thousands deposits and loaned out to whoever
or invested wherever. No Bank in the world will survive if everyone withdraws

their money at the same time even if they complied with all the rules and
regulations on liquidity. Your money is not safe with your worst enemy when

(not if) it crashes and you would be lucky to get 25% of it back. Often it is even
less.

Yes I know the Government (in some countries - not all) guarantees deposits but

it is usually limited to 30g or whatever. It is not an open guarantee without any
limits on. People are wiped out like that. Some commit suicide for after the crash

the liquidators tries to sell assets to recover you money but as you know they
then discover that the assets are in other companies. Even if you are able to

legally lift the corporate veil (which is rather difficult in law) you routinely lose
out very heavily. Only the liquidators make money in a sequestration or

insolvency. Liquidators of course are mostly specialist lawyers.

Lifting the corporate veil

Lifting the corporate veil is explained by understanding that the company is a

legal entity entitled to act on its own and thus be sued on its own without the
shareholders being held responsible for what the company does or does not do.

In simple terms the debts of the company are the company's debts and not the

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