3 ms·
The core problem here is uneducated investors. People should not be able to go public with Groupons, etc, and capture a large portion of uneducated investment c
by 3pt14159 12y ago
The core problem here is uneducated investors. People should not be able to go public with Groupons, etc, and capture a large portion of uneducated investment capital, but they can. Largely this is due to the middle class needing better returns than the 0.5% interest rates they see in their savings accounts, which is partially due to a monetary policy that collapses interest rates in an attempt to boost economic output.
- wpietri 12y agoI would like to see some evidence that's really the core problem. 52% of America owns stocks (down from 69% at its peak). Versus how many individuals who perform this kind of financial manipulation, 10,000? 1,000? Counting ringleaders only, maybe 100? If you're going to make $100m from a scam, you can afford to make it look pretty convincing. Way more convincing than the average amateur investor will be able to ferret out. There's an inbuilt information asymmetry. The theory of public stock markets is that they are well-regulated enough for individuals to invest safely. Either we make that true or we should close the markets to unlicensed amateurs. Blaming victims is always popular, but it never leads to change. (Which is a big part of why it's popular.)