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Originally Posted by OMG!WTF!
I kind of see your first and second point. But there are actually many similarities in the stock market to your third point. IPO's are often reserved for preferred bank clients as are warrants and similar restricted share offerings. And make no mistake, insider trading happens every day. It's not always illegal for some people to have better information than others. And even though sometimes it is illegal, it happens anyway.
And also real estate doesn't have to go to zero for people to end up with zero equity. People lose all their money and then some quite often in real restate. You are responsible for short comings when your insured mortgage is foreclosed. So you can actually lose more than all your money.
If stress tests are meant to save people from themselves, I would think a mandatory session with a lawyer who is mandated to explain the risks involved might be a better solution. Educated people in general make better decisions.
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Don't disagree with anything you wrote.
I don't deal with stocks much so am not too familiar with some of the things you've mentioned, but I'm certainly not anti stock investment.
Was responding to your particular post, so wasn't trying to argue that those opportunities don't exist in stocks, more that there is strategy in real estate investment as well.