Slashdot Mirror
The SEC Created Its Own Scammy ICO To Teach Investors a Lesson (theverge.com)
In its latest effort to fend off cryptocurrency scams, the Securities and Exchange Commission launched its own fake initial coin offering website today called the Howey Coin to warn people against fraudulent cryptocurrencies. From a report: The name is a tongue-in-cheek reference to the Howey Test that the SEC uses to determine whether an investment is a security, which the Commission would therefore have legal jurisdiction over. Click 'Buy Coins Now' on the Howey Coins site and you'll be redirected to an SEC page that states: "We created the bogus HoweyCoins.com site as an educational tool to alert investors to possible fraud involving digital assets like crypto-currencies and coin offerings." It even has a white paper [PDF].
What work are you doing? Complaining on the internet using a computer that was made possible by other peoples' innovation, hard work and CAPITAL?
Perhaps you'd prefer the island paradise of Cuba or the lush mountains of North Korea.
This message brought to by the hundreds of millions of people murdered by communist regimes in the 20th century.
https://fee.org/
>> Unfortunately the way that investments and capitalism work there is no way to actually guarantee that you will get money back on your investment.
>Actually you *can* guarantee it. Most people don't completely guarantee it, because low-risk has much higher returns than no-risk.
Actually no, you cannot. Deflation is a real thing, although it has been a while, and inflation makes most of the 'guaranteed' gains a lie - you are losing real value on your very small returns. This is actually part of the big game plan at present to push the middle class in to more risky investments, which generally end up shoveling the majority of the gains to the primary stakeholders.
Sure, you can have a company that will 'guarantee your return', but who is guaranteeing that company? hmm? There is no safe bet, especially if there is a real economic downturn.
The 'problem' is there has not been one for quite a long time - there have been bumps, however governments have plastered over them by protecting the 'too big to fail' companies using public money, and then printing more and more money to inflate out of their problems. The very rich love this, as most of that new money tgushes up pretty quickly to the top, making them somewhat inflation proof, while inflating away the value of the lower classes.
Your hedging example is quite funny - you think the outcome of an equal bet both ways on a game is no loss? go and check the numbers ;)
Hedging is a way of trying to minimise risk, often by dealing with others who disagree about the level of risk - but it in no way protects you from a general system failure.
But yes, you started off well, only losing the plot towards the end with your thoughts of there being safe investments.
My great grandfather bought a farm in 1912, he lost it in the 20s, and never ever forgot the name of the lawyer who foreclosed on him - it was a very shameful thing back then - the farm was well run and profitable, but economics of farming and debt changed..
He bought another farm around 1940. Larger, better positioned, for less money... Because the value of farms dropped, significantly.
Farms were about the MOST solid asset there was back then..
Many people have forgotten that there are NO safe investments, only considered risks.
However, many MANY more people have forgotten that if you dont save, dont invest, dont bring value, then expect your net worth to tend to zero (if you are lucky).