Sunday, September 11, 2011

Locavesting, the Revolution in local investing and how to profit from it

My bookreview about
Locavesting, the Revolution in local investing and how to profit from it

The book Locavesting is an interesting book about alternative ways of investing. The traditional funding sources for small businesses - savings, friends and family, venture capital, and bank credit and loans - have become scarce since the financial crisis.

Today a lot of people, are buying local and eating local, but we are still not investing local. Financial markets have evolved to serve big business (corporates), at least it seems when you look to the numbers. Of all the trillions of dollars flashing through the financial markets, less than 1% goes to productive use. Meaning poviding capital to companies that will use it to hire, expand or develop new products. More than 99% of the money is sucked into trading and speculation.

Small businesses create three out of four jobs and generate half of GDP, but each year a staggering amount of subsidies, grants and tax breaks go to the most profitable and politically connected corporations with little economic or social pay off. In our 21st century financial system we can conclude that there is a massive misallocation of capital away from its most productive uses.

The book Locainvesting offers and explains new ways of investing from crowdfunding to direct public offering (DPO). Did you hear about the story of Cops&Doughnuts, nine cops in Michigan that saved a 111-year old bakery. Just read the book and act accordingly!

Another book that I didn't read but could be interesting is

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