It gets really problematic when the money market doesn't allocate capital to productive investments. That's its ostensible and actually the only socially acceptable purpose.
We see people investing in dodgy companies, look at Theranos, not because the business idea is sound, but because the investors have powerful backers and can extract outsize return from inferior product.
And then there's bitcoin, which is not a medium of exchange, not a store of value, not a unit of account, but a pure object of speculation and now even Goldman Sachs advise to put the money there. The real world is not improved by clear-eyed people allocating funds to a Ponzi scheme.
I'm not seeing the problem. What you're saying is that you want to dictate how people spend their money. Why is buying penny stocks a concern to you but spending that same amount of money on travel, cars, beanie babies... is not?
People should be able to spend their money as they please. Again, this is a red herring because their is upside to be had in plenty of these investments. Contrary to the article penny stocks are nowhere near 100% fraudulent.
We see people investing in dodgy companies, look at Theranos, not because the business idea is sound, but because the investors have powerful backers and can extract outsize return from inferior product.
And then there's bitcoin, which is not a medium of exchange, not a store of value, not a unit of account, but a pure object of speculation and now even Goldman Sachs advise to put the money there. The real world is not improved by clear-eyed people allocating funds to a Ponzi scheme.