I was reading IRC log for lulz and guess what, there was one interesting conversation - Goat and Smoov going at it. Smoovius was asking questions and Goat was answering. 
After reading this, it looks like goat never ever invested the coins from his "mining" bonds to any mining equipment nor did he bother buying any shares in any other mining bond or from gpumax?
It sounds like he took out a perpetual "loan" for what ever and he can pay it back when ever via perpetually diminishing dividends (unless the difficulty falls)
I personally call this bull shit. If you sell mining bond, you mine. Period.
After reading this, it looks like goat never ever invested the coins from his "mining" bonds to any mining equipment nor did he bother buying any shares in any other mining bond or from gpumax?
It sounds like he took out a perpetual "loan" for what ever and he can pay it back when ever via perpetually diminishing dividends (unless the difficulty falls)
I personally call this bull shit.
If you sell mining bond, you mine. Period. I don't get the logic here. Who cares if he mines or not, as long as he gives the bond holders a dividend corresponding to the PPS output of 1 MH/s? What difference does that make for the bond holder whether he mines, he invests in mining or he does anything else with the investment? Would they get more dividends if Goat mined by himself? Would they have any claim to the mining hardware Goat would buy (those are not shares)?
From the contract, one can assume that the bond will never be bought back unless Goat doesn't need the money anymore. As long as he gives holders dividends corresponding to the contract, what's wrong with a bond whose returns are indexed on fixed mining?
Now, if the question is "are people wrong in investing in such bonds?", well, anyone can see the answer in this case. And if you agree that it would make no difference if Goat mined by himself, you will also see that investing in perpetual fixed mining bonds (the problem here is more "perpetual" than anything else) does hardly make sense.