that's right, creationist junk bonds!
“I would agree that these bonds are very high risk,” he told me. In addition to their lack of rating and a secondary market, the bonds are callable, meaning Answers in Genesis can collect on the bond at any point before it has matured. (The buyer has no such privilege.) Moreover, the bonds are secured only by the revenues and assets of the Ark Encounter project, not by Answers in Genesis itself.
“Should the project be unsuccessful,” Yang notes, “AiG holds no responsibility in meeting the interest payments of these bonds and the bonds may default.” If the project falls through, in other words, investors won’t just lose their interest payments: They’ll lose their entire investment.
for some reason i can't fix the spacing on my text. apologies for the sloppy format.
Seems like a smart move to me. They'll never have to pay out anyway, considering the rapture will occur first. Makes me wonder who the target demographic is though. I wonder why they didn't just ask for donations instead. Maybe the kind of person drawn to the project is also one lacking in good financial smarts. Coincidence? I think not.
Dang, just answered my own question. They offer it as a bond so they bear no real responsibility for bilking the suckers potential investors. God blesses America, where anyone can and should honor his honor by getting rich. If it turns out to be a loser, the investor must not be pious enough. Those behind Answers in Genesis, who offered the bonds are still on the short list for heaven because they didn't actually "steal" anything, they just provided an opportunity for their fellow man.
Will they argue they're TBTF (Too Big To Fail) and demand compensation if this all falls through. We'll just have to wait and see. It's so exciting.
I've got to doff my hat to Ham on this one. Like most sheperds do to their flocks, first he f&*ks them, then he fleeces them.
This boondoggle will never open. As it is now, even after all the initial excitement and hoopla, Answers in Genesis has raised only 10-percent of the initial costs needed to start this project.
Ironically, this project will be a myth on the same level as the original story of Noah and his ark.
I think I agree with Pat on this one. LOL Now we know how Ham expects to get more money, fleecing them all along the way.
Here's another idea he could try. Remember when you were a child and you wrote all those letters to Santa? Now you can write letters to Jesus and the Easter Bunny!
Remember when well meaning rich people funded expeditions to find Noah's Ark. They just knew it was there, and it would be PROOF that the bible was true. I suppose they expected animal drawings on the boats inner walls, along with Noah's signature and some petrified dung.
Maybe Ham should add this to his exhibit.
i had one more thought on this. having worked in the financial industry i had to pass several licensing exams. much had to do with the underwriting process of debt instruments. if anyone has ever heard of the Series 52 exam it focuses primarily on that topic. and while it was over 15 years ago, i can't help but think that much of what they are trying to do may not be approved in a prospectus. you can get pretty specific in a bond offering, but to only offer it to people of a certain faith and to limit it to large block purchases only raises some regulatory hurdles. it could easily be confused for a ponzi scheme, which is illegal.
or am i reading this wrong? if anyone has specific knowledge of this kind of thing please speak up.
"am i reading this wrong?"
Let's hope not. That would make this even more entertaining.