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Beyond the stock markets

nding new opportunities to invest in

Tuesday, August 16, 2011

Markets in chaos

Tuesday, August 16, 2011

The fundamental problems in the global economy have not been addressed -- theyve just been papered over with trillions of dollars in printed or borrowed money.
Charles Hugh Smith An Unconventional Guide to Investing in Troubled Times

Tuesday, August 16, 2011

Centralized Institutional Failure

Tuesday, August 16, 2011

Us vs. Them

Mortgage banks predatory lending investment bankers pushing subprime rating agencies asleep at the wheel

Large trade decits degradation of manufacturing jobs, capabilities Real hourly wages havent increased in 35 years

Tuesday, August 16, 2011

2 tiers of investors

Tuesday, August 16, 2011

I realized from a very early stage that the market is a whole rigged job. Theres no chance that investors have in this market. -- Bernie Madoff

Tuesday, August 16, 2011

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The Grand Failure of Conventional Economics

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end o f work era

Source An Unconventional Guide to Investing in Troubled Times

Tuesday, August 16, 2011

Charles Hugh Smiths 7 Reasons Why The Status Quo Cant Work
1. extreme concentrations of wealth 2. unprecedented demand for nite resources 3. increasing dependence on traditional funding macro funding methods 4. dependence on State intervention 5. phony reforms 6. discredited leadership 7. decentralizing technologies (Internet) eroding centralized institutions
Tuesday, August 16, 2011

What to do?

Tuesday, August 16, 2011

New Sources of Investments

Tuesday, August 16, 2011

Decentralization of existing markets

Tuesday, August 16, 2011

New options for investors

1. local stock exchanges 2. return to local banking 3. peer to peer lending 4. private company investment 5. real assets (gold, real estate) 6. social capital (engaged, multiple revenue streams)
Tuesday, August 16, 2011

Local Stock Exchanges

More effective way of allocating capital
to local businesses

Renewed interest in DPOs (Direct

Public Offerings)

Example: Lancaster Stock Exchange (LanX)

Tuesday, August 16, 2011

Key Resources

DPO case studies: dfdpo.com Cutting Edge Capital blog:


Tuesday, August 16, 2011

Return to local banking

Community banks (<$1B in assets) are typically locally owned and focused on lending to local businesses

Example: Deposits with local institutions

Credit Unions are non-prot nancial institutions operated on behalf of members excess revenue betters rates, reduces fees

Tuesday, August 16, 2011

Key Resources

Move your Moneys risk analytics for local

institutions: www.moveyourmoney.info (CUNA)s credit union locator: www.creditunion.coop

Credit Union National Association Independent Community Bankers of

America (ICBA)s bank locator: www.icba.org/consumer/banklocator.cfm Source: Locavesting

Tuesday, August 16, 2011

P2P Lending
enabling individuals to lend to one another skirting traditional banking structures,
SEC cracking down

Example: Prosper.com

Tuesday, August 16, 2011

Investing in private companies

Requires creative solutions to securities


laws to allow non-accredited investors to invest

Example: ProFounder, FundingCircle value of social networks not even begun

to be tapped
Tuesday, August 16, 2011

Real assets
gold (bars), not mutual funds, ETFs real estate (single family, multi-family units) farmland (11% historical appreciation rate) not making any more of it water unusual assets (wine, art, taxi medallions, domain
names, etc.)
Tuesday, August 16, 2011

Agricultural loan funds

Source: http://slowmoney.org/invest
Tuesday, August 16, 2011

Revenue Streams

need to expand earnings capabilities beyond full-time jobs

internet based businesses monetizable hobbies return to guild-like systems, learning skills from masters ROI for higher education?

Take on a project and move on to the next expand projects to include social capital (contributing to others in your community/local enterprise)

Tuesday, August 16, 2011

Key Resource
Money is a tool; dont invest your money in Wall Streets promises, invest it with an unblinking eye on systemic risk; invest in your own life and in the lives of others. This book explores how to do just that.

Tuesday, August 16, 2011

Key Resources
"Once in a while, a book comes along that has the potential to change things. This is one such book. It is going to unleash a major movement in this country." Steve Costa, Point Reyes Books

Investing locally makes sense as long as you do it with your eyes wide open. And this book is a realistic, up-to-the-minute exploration of the eld. After all, it was the local community that invested in Ben & Jerrys--and it worked out pretty well for them. -- Ben Cohen, cofounder of Ben & Jerrys

Tuesday, August 16, 2011