This has been going on since time immemorial. A part of me thinks it's a necessary evil in a world where people won't fund revolutionary ideas. However, that also means Milton and Holmes etc.
I would agree that fraud is always going to happen; how much though is up for debate, and I would tend to argue that more fraud makes the world worse at funding revolutionary ideas. More revolutionary ideas happen and get funded in the US, which while I believe has become rife with fraud over the past decade, is no where near the scale the number of frauds in China or Africa or less well monitored markets.
Trust is fundamental part of markets and is basically its own interest rate. The more people can trust one another, the riskier investments people are willing to partake in.
Trust is fundamental part of markets and is basically its own interest rate. The more people can trust one another, the riskier investments people are willing to partake in.