Re:Attorney General orders unregistered crypto lending platf...
by somethoughts on Monday October 18, 2021 @05:22PM
(#28911931)
The challenge is when enough uninformed investors get scammed at the same time then some politician is going to want to give them all a bail out. Think 2008 financial crisis and the subprime mortgage bailouts - I bet a handful of them knew that buying a house with their shaky credit was probably not a great idea but decided to YOLO it.
Of course the corporation/vendor of the scammy investments will fold at that time, but the management will have long since pulled their money out and will be largely unpenalized, leaving tax payers to fund the bail out.
That's not to say accredited investors don't get government bailouts when they play it to close to the fire, they do. The bailout is just done quietly in the background and nobody is the wiser...
Of course the corporation/vendor of the scammy investments will fold at that time, but the management will have long since pulled their money out and will be largely unpenalized, leaving tax payers to fund the bail out.
That's not to say accredited investors don't get government bailouts when they play it to close to the fire, they do. The bailout is just done quietly in the background and nobody is the wiser...