Dynamic Life Creations - Taking Action to Develop and Transform

Monday, June 23, 2008

Society class disconnect for investment opportunities - impact on society development?

Much of the news we watch on tv, read in the papers or on the internet, or even what is the driver behind many of our jobs is all finance and investment related. Though many of us do not have careers in these fields we are constantly looking to make money through property, stocks, private businesses etc etc and takes up a considerable amount of our time - probably more than you are consciously aware. Though the whole concept of discussing importance and non-importance of money and the impact it is having on our lives, more now than ever, is something to be discussed today I want to focus more on the fact that there is a disconnect in respect to investment opportunities for the rich and poor and the impact that is going to have on our society.

It is known that the rich have private bankers and are seen as more important by the organisations that control access to investment opportunities; this provides access to structured products, leverage, initial public offerings, short selling and overall more opportunities to make money while the money is being made. The poor are generally treated with more distain, are provided very generic possibilities (though in today's market not a bad thing perhaps) and options for making money are very one dimensional. The statistics show that the divide between rich and poor is growing with the middle class either moving up or down - this is in respect to both growth and allocation of income and assets.

However more now than ever there is becoming unrest between the 'masses' and the 'elite'. The so-called masses are becoming unsettled with the obscene amount of money made by big business when only the latter can justify the salaries being paid. Hedge fund managers are making hundreds of millions of dollars in salaries and this is generated from profits reallocated from the investments of the 'masses' - put simply the hedge funds make profits and mutual funds make losses. Again one reason for this is that the investment options and techniques available for the hedge funds is far greater than that for the mutual fund.

But the point of my message is this. People losing money are becoming angry and disillusioned with the greed of the big end of town and the fact that they have unlimited money whilst the 'masses' do not and are struggling more and more just to provide basics eg. clothing, food, housing. This must have an impact on our society development and will only drive a divide between those who have and those who do not have. This divide is becoming more and more excessive and as everyone knows, just like a price bubble, all excess at some point will reverse.

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