Ah yes, it’s completely fair that the only people who should be morally allowed to participate in the financial apparatus that sometimes leads to getting rich, are the people who are already rich. I see no incongruities whatsoever with this logic. rapid eye blinking
Bunch of people lost money. Some of them got rich. Booze is good and gambling is fun and it’s ok to blow their own money on exactly the things that everyone else blows their money on.
(This hits on the idea of “accredited investor,” and I have such a hard time not calling out that it’s a mechanism for already-rich people to participate in every deal that could make not-rich people rich. And that there are very few other ways to earn a fortune when you only have $10k in the bank. I lost my dad’s $11k when mt Gox exploded, which is objectively stupid. Meanwhile my friend is now a multi millionaire simply because he didn’t lose his coins and didn’t sell them. Was he stupid? Did I blow my money on gambling, but he was just lucky?)
Didn’t mean to rant, but it is what it is. You’re not wrong though.
The accredited investor rules aren't what's locking out individuals from getting the deals that are actually worth something. Those deals are already buttoned up by the connected VC folks. Look at the endless string of ponzis that get advertised to a typical doctor or dentist, that's all you're missing out on.
I agree that the rules are overly crude and that in principle there should be some more equitable way to achieve the same way. But I'm also very confident that those rules have stopped a lot of people losing all their money and killing themselves.
> Meanwhile my friend is now a multi millionaire simply because he didn’t lose his coins and didn’t sell them. Was he stupid? Did I blow my money on gambling, but he was just lucky?
Yes. You both did a stupid gamble and one of you got lucky for now. There's no broader lesson to take from that.
> Ah yes, it’s completely fair that the only people who should be morally allowed to participate in the financial apparatus that sometimes leads to getting rich, are the people who are already rich.
I agree with your overall point, but to be clear, we're talking about day trading. There's a lot of arguments you could have about banning casinos, pro and con, but "hey, some poor person might win big on the quarter slot machines" isn't a good argument.
Also, the median "accredited investor" is a dentist from Topeka who's about to get suckered by an advance fee fraud. Being an accredited investor doesn't automatically give you access to good deals. There just isn't a pool of amazing investments out there hungry for capital but being stopped by investor protection laws. (But there is a pool of scams...)
(Note that I'm not saying that the system is good or fair or just; I'm just saying mechanically, accredited investor laws aren't the part of the system stopping you from getting rich.)
Accredited investor rules exist so that your average person isn’t scammed into penury from a fraudulent investment.
Accredited investors suck at due diligence as is, and Joe Everyman can barely understand their own bank statement, so those rules exist to prevent them from getting raked by extremely questionable investment offers.
Bunch of people lost money. Some of them got rich. Booze is good and gambling is fun and it’s ok to blow their own money on exactly the things that everyone else blows their money on.
(This hits on the idea of “accredited investor,” and I have such a hard time not calling out that it’s a mechanism for already-rich people to participate in every deal that could make not-rich people rich. And that there are very few other ways to earn a fortune when you only have $10k in the bank. I lost my dad’s $11k when mt Gox exploded, which is objectively stupid. Meanwhile my friend is now a multi millionaire simply because he didn’t lose his coins and didn’t sell them. Was he stupid? Did I blow my money on gambling, but he was just lucky?)
Didn’t mean to rant, but it is what it is. You’re not wrong though.