Yes, whether they are victim or not changes a lot about how to respond to it; if they are the target of a malicious scam we should use law enforcement resources etc to crack down on the scammer, while if they are just bad at investing we will sadly shake our heads. Similar to how we respond differently to murders and mountaineering accidents.
that’s not really about what we do about the person who lost their money, though. it’s about how we respond to the person who took it.
sure, if there’s a scammer sometimes you can recover some of the money lost and give it back, which is in some way about what happens to the person who lost their money, but there’s no guarantee of that either way
society … upon observing that bad things are happening, does have a moral obligation to try to minimise them
I would rather say that society should try to minimize bad things that are done to somebody, but if someone fucks up their own life, that’s their own decision to make and we don’t want society to interfere. Sometimes there’s a tradeoff when the utilitarian calculus so lopsided that it overrides the concerns for autonomy (things like involuntary psychiatric hospitalization, banning heroin, etc). But in general we don’t want society to make peoples’ decisions for them, even if it’s making “better” decisions in some sense.
A while back I linked Matt Levine’s fantasy investing regulations:
Anyone can invest all they want in a diversified portfolio of approved investments (non-penny-stock public companies, mutual funds and exchange-traded funds with modest fees, insured bank accounts, etc.).
Anyone can also invest in any other dumb investment; you just have to go to the local office of the SEC and get a Certificate of Dumb Investment. (Anyone who sells dumb non-approved investments without requiring this certificate from buyers goes to prison.)
To get that certificate, you sign a form. The form is one page with a lot of white space. It says in very large letters: “I want to buy a dumb investment. I understand that the person selling it will almost certainly steal all my money, and that I would almost certainly be better off just buying index funds, but I want to do this dumb thing anyway. I agree that I will never, under any circumstances, complain to anyone when this investment inevitably goes wrong. I understand that violating this agreement is a felony.”
Then you take the form to an SEC employee, who slaps you hard across the face and says “really???” And if you reply “yes really” then she gives you the certificate.
Then you bring the certificate to the seller and you can buy whatever dumb thing he is selling.
If an article ever appears in the Wall Street Journal in which you (or your lawyer) are quoted saying that you were just a simple dentist, didn’t understand what you were buying and were swindled by the seller’s flashy sales pitch, then you go to prison .
dentists almost certainly make enough that they qualify as accredited investors and the can currently buy dumb investments
Here is a rough summary of how U.S. securities law works:
Individuals can only invest in public companies that trade on stock exchanges, publish financial statements every three months, and are generally subject to a fairly strict regime of regulation and vetting.
Except dentists; dentists can invest in any dumb thing someone can dream up to sell them.
I mean, not literally just dentists, though dentists are the paradigm case. Radiologists too. Professional football players. Owners of successful pool-installation businesses. If you are moderately affluent—if you have a net worth of more than $1 million not counting your house, or an annual income of more than $200,000 a year—then you qualify as an “accredited investor” and can invest in private placements that are not subject to the disclosure and auditing requirements of the public markets. And if you are a bit more affluent, and you show a proclivity for this sort of thing, then you will be relentlessly hounded by brokers trying to sell you dodgy private placements.
Here is a Wall Street Journal article about how only 1.5 million households were accredited investors when the rules were put in place in 1982, but now 16 million are. There are the usual anecdotes about unsophisticated but nonetheless accredited investors (a health-care executive, an NFL offensive lineman) being swindled by brokers into putting all their money in bad investments, and the obvious complaints about the rule:
…
So what can you do? Raising the accredited-investor bar to protect the dentists from fraud seems sort of un-American; what does liberty mean if not the freedom to invest in far-fetched private placements? On the other hand, Securities and Exchange Commission Chairman Jay Clayton wants to broaden the accredited-investor definition, “such as by allowing in people who don’t meet income or wealth thresholds but have professional licenses or advanced education”—I assume mainly in dentistry—so that more people can buy dumb private placements. What kind of company do you think will want to raise $1,000 at a time from poor-but-credentialed investors, but won’t want to go public? Is the answer “the very good and fast-growing kind”? Really?
The massive investments from China are now transforming the global South. This map suggests that the main sectors of Chinese interest in Africa are in energy, transportation, and real estate.
For those reading who’ve stumbled across this post and haven’t read the previous one, give it a quick read first then come back here. It provides context to the following story.
So I’ve just bought my first property with my little egg of savings from my time in Melbourne and now I’m babysitting my infant New Zealand bank account containing $0 and my obese mortgage balance that sucks directly…
For those of you who read the blog way waaaay back in the day, and have a robotically good memory, you may recall that in 2014 I bought a house in New Zealand and in 2015 I bought a second one.
I’m not rich by any stretch, I’ve never been given anything and I’m not even a particularly good saver; but there is a story, and this is how it went down.
Khyber Pakhtunkhwa – the other side of the picture
“Gone are the days when law and order would keep the investors away from investment in particular area,” said Raziuddin, CEO of Khyber Pakhtunkhwa Oil and Gas Company.
“Chinese are working in Karak, a southern district of Khyber Pakhtunkhwa rich with oil and gas. Thanks to video-conference facility, Beijing and Karak are in touch and doing business,” said Mr Raziuddin while talking about the rich oil and gas prospects of Khyber Pakhtunkhwa in an event held recently. Security concerns may have been hurdle to the full exploitation of the potential of the area, still 10 companies are working in Southern districts rich with oil and gas, he said.
“Khyber Pakhtunkhwa is not as dangerous as Siberia or other countries in Africa where companies are working in oil and gas fields,” he said.
While he talked of how with just 10 million dollars any one could invest in oil and gas as the KPOGC was going to help with all the formalities, some investors from Gulf already seemed to have started taking interest. (more)
Save Cash On Your New Property Purchase With These Tips
Save Cash On Your New Property Purchase With These Tips
Property acquisition is most likely one of the most significant financial decisions you will make in your life. So can you save cash on your new property purchase?
No matter how modest or large your mortgage is, you will likely have to dip into your savings to cover the initial purchase price. However that is only the beginning of your financial obligations.
Gorgeous two storey Villa with six bedrooms in superb location
Beautiful, two storey villa with six bedrooms in prestigious gated community conveniently located between Sosua and Cabarete.
Very large area of construction and huge garden.
The villa boasts a refined tropical elegance with soothing decor and Caribbean art. Ideally located just seconds away on foot from the exclusive beach club, with delicious restaurant, seaside pools and paved walking and biking paths.
Highlights:
6 bedrooms with en suite bathrooms
Secure, gated beachfront resort community with many amenities
Private pool and gazebo
Upper level private patio ideal for sunbathing
Outdoor BBQ
Steps to beach club with restaurant, bar and pool
30 minutes to world class Playa Dorado Golf
60 minutes to Playa Grande Golf
All in all, a lovely property, perfect as a full time residence, vacation retreat or excellent rental investment.
An incredible opportunity to own a secure one-level house with 3 bedrooms and pool in a convenient beachfront location. This spacious home is located in a gated, family oriented community of professionals and retirees which features 24/7 security, ample green areas.
As you come into the house there is a vestibule that welcomes you into a warmth and cozy atmosphere…
The large living / family room is a fantastic place to get together and entertain as it next to the kitchen and it also features beautiful views of the pool and backyard.
The perfect complement to this spacious social area is the terrace which is conveniently located next to the kitchen, making it ideal for BBQs, just sitting outside enjoying a cup of coffee in the morning, reading the news or just relaxing… ensconced in a lush tropical garden on a private sandy beach.
For Sale: Magnificent Oceanfront Mansion with Panoramic Views
City: Cabrera
Country: Dominican Republic
Price: $ 4,900,000
Beds: 10
Baths: 10
Floors: 2
Square Feet: 12,658
Lot Size: 10,000 m2
This individual cliff top property sits right above the beautiful crystal clear waters of the Atlantic Ocean, with panoramic views.
This premier rental property is nested on two acres of pristine Caribbean coastline. Featuring 10 bedrooms a beautiful oceanfront pool, a hideaway jacuzzi, oceanview bar and entertainment center, grass tennis court, and multiple living areas, this villa is like no other in the Caribbean.
Situated on cliff side with incredible ocean views as the backdrop, this award winning ten bedroom luxury villa will enchant you with its 12,000 square foot living space. Play tennis in the full size grass tennis court or sunbathe by an alluring slate bottom pool and soak in a free form rock whirlpool Jacuzzi complete with a cave/Enjoy sunset cocktails around an authentic Tiki bar and sample the delicious cuisine from our professional kitchen and finish the night at the in house disco and discover why the villa is know as the best party villa in the Caribbean!
The villa is blessed with the most dramatic Caribbean sea-views imaginable. This premier rental property is nested on two acres of pristine Caribbean coastline. Featuring nine bedrooms an beautiful oceanfront pool, a hideaway Jacuzzi, ocean view bar and entertainment center, grass tennis court, and multiple living areas. This villa is like no other in the Caribbean!
Exclusive Caribbean home for sale in Cabarete Country
Dominican Republic
Price: $ 2,200,000
Beds: 6
Baths: 6.5
Floors: 2 Square Feet: 10,764
Lot Size: 3,500 m2
Windward House, designed by the award-winning American architect and completed by a German contractor in 2009, is a 6-bedroom, 6-½ bath 1000 square meter (10,000 sq. ft) villa of exceptional quality. From the fabulous heated pool/spa combination with reflecting pool, coralina terraces and waterfall, to the over 700 square meters (7000 sq. ft.) of travertine marble floors, American and European appliances and hardware as well as furnishings from all over the world, this is an ideal home for a family requiring elegance as well as flexibility.
One enters the villa through mature tropical gardens, across a wooden bridge that spans a fishpond containing Tilapia, Koi and exotic turtles. The foyer opens onto a black-stone lined reflecting pond which divides the private and public areas of the villa. To the left, at ground level, are 3 bedrooms each with en suite full bath. One bedroom is currently in use as an office. Turning right from the entry, one walks through a spacious 90 sq. meter great room with Tea nook and 5 meter ceilings. Next are wine room, dining room and kitchen with huge pantry that opens onto an extensive outdoor kitchen as well. A 4th ground floor bedroom with full bath is accessed from the dining area. Connected to the kitchen are extensive service areas including laundry, staff apartment with bath, storage and mechanical rooms and 2-car garage. The garage includes a large storage loft………
Built more than 35 years ago, when Lord Glenconner was still developing Mustique, the blueprint of Plantation House was designed by Swedish architect Arne Hasselqvist, who worked on a number of the island’s other villas. Hasselqvist also worked on the house with Oliver Messel, Lord Glenconner’s main designer for the entire island.
