> Sophisticated investors don't invest in obvious scams. That's tautologically true. Does that mean we should just watch and do nothing while people get scammed?
Imagine I buy a chainsaw which is clearly labelled as something that can cut your hands off, it's widely known and obvious to everyone that chainsaws can cut your hands off very easily, not just in the specialist financial press but also on comedy shows and from TV news pundits and loads of other sources - I'm a mentally competent adult, I'm informed about the substantial risks, I want the chainsaw anyway so I can chop down lots of trees fast. Then I chop my own hand off by mistake.
Was it society's responsibility to protect me from my own mistakes, even when I was fully informed of the risks?
It's like giving 40% of the adult population a chainsaw that they have to use if they want to retire at a reasonable age. The outcome is predictable and they would be wise to invest in a prosthetics company.
Imagine I buy a chainsaw which is clearly labelled as something that can cut your hands off, it's widely known and obvious to everyone that chainsaws can cut your hands off very easily, not just in the specialist financial press but also on comedy shows and from TV news pundits and loads of other sources - I'm a mentally competent adult, I'm informed about the substantial risks, I want the chainsaw anyway so I can chop down lots of trees fast. Then I chop my own hand off by mistake.
Was it society's responsibility to protect me from my own mistakes, even when I was fully informed of the risks?