4 ms·

It's not like rich people are all that much better at investing in companies anyway. They're just better able to afford the consequences of their ignorance.

deleted 12y ago
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colinmegill 12y ago
Which makes them much better at not losing their life savings, hence the regs.
- briandear 12y ago
  So we should ban the lottery for poor people.
  - luch 12y ago
    Actually yes, I know an economist (working for the BCE) half-jokingly preaching it. According to him, lottery should be reserved to people who can afford to lose 10$.
  - notahacker 12y ago
    In fairness to the lottery, few people consider it to be a sensible place to stick 50% of their net worth. Bearing in mind that top startups - which generate nearly all the return to VCs - have a marked preference for "smart money" and the majority of startups ventures fail hard, most lotteries probably have a higher expected value than retail investors are likely to see from the average crowdfunding portfolio.
    - clarky07 12y ago
      luckily the new regs don't allow you to invest 50% of your net worth.
      - notahacker 12y ago
        If I understand correctly, the 10% of net worth restriction applies to investments in a single startup. That being the case you can guarantee there will be commission-earning intermediaries or platforms misrepresenting the concept of portfolio diversification to encourage people to invest in as many startups as they can afford...
  - ceejayoz 12y ago
    Frankly, yes. Government-run lotteries are a pretty abusive practice that should be ended.
    - deathhand 12y ago
      John Oliver has a great segment on this: https://www.youtube.com/watch?v=9PK-netuhHA https://www.youtube.com/watch?v=9PK-netuhHA
- DennisP 12y ago
  The new regs put limits on how much money the non-accredited investors are allowed to invest.
- clarky07 12y ago
  actually the new regs are such that you can't in fact lose your life savings. only 10%.

deleted 12y ago

[deleted]

colinmegill 12y ago

Which makes them much better at not losing their life savings, hence the regs.

briandear 12y ago
So we should ban the lottery for poor people.
- luch 12y ago
  Actually yes, I know an economist (working for the BCE) half-jokingly preaching it. According to him, lottery should be reserved to people who can afford to lose 10$.
- notahacker 12y ago
  In fairness to the lottery, few people consider it to be a sensible place to stick 50% of their net worth. Bearing in mind that top startups - which generate nearly all the return to VCs - have a marked preference for "smart money" and the majority of startups ventures fail hard, most lotteries probably have a higher expected value than retail investors are likely to see from the average crowdfunding portfolio.
  - clarky07 12y ago
    luckily the new regs don't allow you to invest 50% of your net worth.
    - notahacker 12y ago
      If I understand correctly, the 10% of net worth restriction applies to investments in a single startup. That being the case you can guarantee there will be commission-earning intermediaries or platforms misrepresenting the concept of portfolio diversification to encourage people to invest in as many startups as they can afford...
- ceejayoz 12y ago
  Frankly, yes. Government-run lotteries are a pretty abusive practice that should be ended.
  - deathhand 12y ago
    John Oliver has a great segment on this: https://www.youtube.com/watch?v=9PK-netuhHA https://www.youtube.com/watch?v=9PK-netuhHA
DennisP 12y ago
The new regs put limits on how much money the non-accredited investors are allowed to invest.
clarky07 12y ago
actually the new regs are such that you can't in fact lose your life savings. only 10%.