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The finance industry essentially succeeds by jumping between two people making an exchange and skimming off as much profit as they can get away with. A giant va

by CPLX 8y ago

The finance industry essentially succeeds by jumping between two people making an exchange and skimming off as much profit as they can get away with. A giant vampire squid if you will. So of course someone has looked at the billions going to charity and tried to figure how they can get commissioned on it as well. While it's of course theoretically possible that this increases donor efficiency somehow, that's an extraordinary claim which requires evidence and proof. The initial reaction should be extreme skepticism.

dalbasal 8y ago
To play devils advocate.. Better capital allocation could make the NGO sector way more effective, and help it actually solve issues like extreme poverty, infant nutrition and basic healthcare. Currently, one charity could be doing the same thing (say, rural inoculations in Bangladesh) 10X more effectively, but raising far less money. If a financial market can skim their 6% while solving this problem, the return in terms of the number of people inoculated could be 60% or 600%. I share your skepticism though, of solving these issues with with a new type of security. I think money markets may be the best example of free market failures.
deleted 8y ago
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