Saturday, August 2, 2008


I am quite unsympathetic for people who invest in a scheme that looks too good to be true.

Firepower was such a scheme. The company promised motorists huge increases in fuel economy with great benefits to the world's environment all achieved by dropping a pill in your fuel tank. People of my age, 68, would have read of similar scams in the U.S. from the 30s on.

The owner of the now defunct company has done a runner and the $80,000,000 seduced out of investors and sports stars has all gone...somewhere. The promoter is apparently a charismatic bloke who managed to get himself in photo opportunity shoots with presidents, pollies and sports stars. There was a lot of spin about the company with stories about the Russian rail system and military entering into a deal with Firepower.

A number of prominent Western Australians look like getting in the poo after financial advisers tipped them off to a good thing and they bought shares at 1c and sold them anywhere between 35c and $1.40. Sounds like salting the mine.

Back in the 1950s water/alcohol injection was popular mainly because it enjoyed success in the P51 fighter aircraft. It involved a venturi system sucking a water/alcohol mixture into the carburetor once the engine was running and warm. The water/alcohol system was turned off before one arrived at ones destination and the car finished up running on petrol. People claimed benefits, but it didn't get off the ground like the P51.

There should be an Investors' Bible with a bold heading of... If it Looks Too Good to be True...It Probably Is.

No comments: