The Emperor Has No Clothes

I just read a brief news blurb on SeekingAlpha.com that Carl Icahn has reportedly purchased a stake in Herbalife. I see this as a sign that American capitalism is in a final death spiral, when one of its foremost practitioners invests in what can only charitably be called a 'pyramid scheme.'

Ask yourself this: who purchases Herbalife products aside from other Herbalife distributors? Herbalife has no retail outlets and relies solely on a multi-level marketing (MLM) scheme to make its sales. OK, one can say, caveat emptor and all that. But for Icahn and Dan Loeb to take stakes in the company? When the SEC is reportedly investigating it for being nothing more than a Ponzi scheme?

My point is that when the titans of industry start to underwrite and support such transparently fraudulent operations as Herbalife, such support signals a rotten core at the center of American capitalism. We've become an ecomomy of Herbalife distributors all selling madly to the next fool in line and hoping to grab the last seat in the game of musical chairs before the music stops.

If you can stand to read about how Herbalife and its agents have defrauded various people, check out this link:

http://factsaboutherbalife.com/wp-content/uploads/2012/12/Negative-Testimonials.pdf