![]() ![]() |
Page 1 of 1 |
[ 2 posts ] |
|
Author ------ Message |
---|
Investing in local economic development isn't as easy as putting money into retirement account vehicles, or buying stocks, or buying into a mutual fund. It's a lot more like growing a garden (although the business operators are doing most of the work). There aren't many of us who are going raise all their own food, and quit going to the grocery store. (I kind of had that fantasy - hardcore self-sufficient homesteading - 40 years ago, and gave it a lot of effort. I worked very hard, had good times and rough times, and learned that it is far easier, and better, to work with a community. Simply put, I couldn't do everything for myself, unless I severely simplified the idea of what "everything" would consist of.)
Conventional investing "instruments" have been slickly packaged to be easy to buy, to be safe, with returns that have been historically satisfactory, though that scenario has degraded significantly in recent years. Either I am getting smarter, or it is becoming more obvious that a great deal of The Economy is based on global speculation and manipulation. The growing wealth gap also means that control of The Economy is more than ever controlled by a relative few who are completely disinterested in our community and our quality of life. Most of America is seen as an oil deposit to be drilled and pumped, as quickly and profitably as possible, with no thought to sustainability. Just like in the garden metaphor, we can't quit the national chain grocery overnight, but common sense says the we should be tending a good garden. Some of the ways I have learned about to invest locally include: start a business; collaborate with other businesses; personal loans; membership in a Limited Liability Company (LLC); membership in a co-op; active participation in community projects; publicly funded projects; crowd-funding; active participation in nonprofits; share; donate. There are possibilities of creating some more bank-like, or Wall Street-like entities that can make local investing easier and more "normal. There could be an investment club, which would need to be professionally organized and managed to comport with SEC (Securities Exchange Commission) regulations. There could be a loan fund, also needing professional management. A willing bank or credit union could be recruited to evolve its mission to be primarily for community investment (see the Bank of North Dakota: http://prospect.org/article/people’s-bank-0 ). There is also a new LLC version called a Low-profit Limited Liability Company (L3C for short), where foundations can invest in for-profit ventures that are mission compatible. Crowdfunding, which until very recently was restricted to donation-for-a-product-later-maybe, has some newly published rules (still being vetted by the IRS) that allow the sale of equity (securities, as in the SEC name). During the past six months, the Murray Hotel has been engaged in setting up a much older version of crowdfunding, the Direct Public Offering (DPO). (Full disclosure, I am a member of the Murray Hotel LLC). The DPO was part of the original Securities Act of 1933, which regulates the exchange of securities, but for some reason it is not well known. The MH has always wanted to be a "community owned enterprise" for many of the reasons stated in my earlier articles - if the ownership of the business (one of the money coming into the community type) is local and broadly shared, then the profits will circulate in the community. Other benefits include improving the sense of community with a historical icon as a symbol-in-use, and raising the profile of Silver City as a great place to visit. Murray Hotel LLC has filed notice of a DPO with the state regulators, and the selling of equity units has begun. To learn more about local investment possibilities, the Green Chamber is sponsoring a Local Investment Opportunity Network gathering next Thursday, Jan. 21, 5:30, at the Murray Hotel, either in the Martha Room or the Ballroom, depending on turnout. The featured topic will be the MH DPO, but any subject will be open for discussion. Last edited by gorwest on Fri Jan 29, 2016 5:51 pm, edited 1 time in total. |
![]() ![]() |
Page 1 of 1 |
[ 2 posts ] |
All times are UTC - 7 hours |
Who is online |
Users browsing this forum: No registered users and 1 guest |
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot post attachments in this forum |
Silver City & Southwestern New Mexico Monthly Community Calendar | ||||
Click To Create A New Calendar Event | ||||
<< | Community Events |
>> | ||
19 |
20 |
21 |
22 |
23 |
24 |
25 |