Money out of thin air ...

Do not try at home

Few days back, I enquired my former colleague about the ways one can fill up a digital wallet. According to him, the source of money can be anything, such as, a credit card. 

The card companies usually put a high interest if cash is withdrawn and usually offer a interest rebate for real goods and services. In other ways, if you repay within the interest free period, then you only need to pay the actuals. 

Digital wallets on the other hand charge a fee for the reverse action i.e. when one pushes money back to the bank account. Let us assume, that all inbound and outbound transaction fees comes around 5% of the total cash.

If one is a good trader in the stock market and can make more than 5% in the rebate period, then he would have created wealth out of thin air. 

I hope such holes are plugged in the popular digital wallets. 

Abnormally high P/E

Suspect companies with abnormally high P/E. It is best to stay away from such companies.

All it requires is a cabal with a PSU. Ask the PSU to buy at high prices each day, generating a trend and inviting the idiot who studies technical analysis and invests in the stock. These moves are pumping up the price of the stock. The owner can now ask for loan and put as collateral his high priced stock. At this point, the owner buys goods from China or Malaysia and sells it to make money. At this point the PSU starts dumping the stock looting the ordinary investor. When the stock price falls below a level, the owner or the PSU may again buy it. The cycle repeats next year and the year after. 

Hence, with no interest payment, one can take a loan and generate income out of thin air (and of course China)