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You have been making a lot of sense in recent posts.
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Yeah.
Stonks have always been thus, but as you say it’s the ease of access that’s changed things.
It’s gambling.
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I don't see any difference between gambling and investing. Movements on the scale of risk premium. The pension industry is rentier capitalism at its finest. Your proposal would create a new tier of rent seekers. Less alpha, more fees.
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@Stonehedge
I agree...this sort of crime definitely needs tougher penalties and charging/conviction rates.
I still kind of stand by my statement though...there needs to be greater awareness about responsible investing. The same way there's help out there for gamblers. Its the same thing.
I know a guy who put everything into something roughly analagous to Theranos. And when I say everything I mean everything. His home, his business, his savings. He lost the lot, along with his wife and kids. He ended up living rough in Athens. (We had a whip to get him back on his feet and he is doing great).
We're in an era where everybody seems to want to stick some money into the next Uber, Tesla or Amazon. Access to high risk investments has never been easier or more widespread. More and more people are losing their shirts. I think there needs to be change from both sides. Tougher penalties and more convictions for sure...but also more regulation about investment affordability checks and greater recognition that investments can slip into gambling habit.
People quite regularly start of doing it responsibly, buying what they can afford to lose. They then luck out, see their portfolio grow and get addicted to that feeling. Thats kind of how it starts. I think that investments should at least be covered by rules that match the responsibilites of the gambling industry. I've heard people argue that there should be (quite relaxed) affordability checks either performed by the fund raiser or as a mandatory step in the application process (to force the applicant to actually think about it).