[a_c_s]

Comparing the light regulation of the past to the current strict regulation, sure the current regulation is better.

But legally anointing an "accredited investor" class based on their current financial resources clearly advantages the rich over the poor. There are other ways to protect investors without categorically denying opportunities for savvy, non-wealth individuals (and people who are currently wealthy also deserve protection from fraudsters).

[refurb]

I'm not saying an advantage isn't given to the wealthy, I'm just challenging the idea that that was the driver for the regulation.

To be honest, the gov't is kind of stuck here. Let people make their own choices and they blame someone else. "I didn't know the mortgage rate was only a teaser!!"

At least with the credited investor regulations, if they lose money, nobody has sympathy for them.

[gfodor]

Seriously, the same people who complain about "accredited investors" being a privilege of the 1% are also going to use the phrase "predatory lenders." So, which is it? Can people be tricked into bad deals or can't they?

I'm pretty sure if anyone could invest in private equity, overnight you'd see a flood of get-rich-quick ventures crop up and you'd see a lot of people lose everything.

I'm not sure if I think the current legal system is fair, but without acknowledging the huge amount of risk involved in changing it any argument against it is hard to take seriously.

[a_c_s]

You do realize there is a difference betwixt a "lender" and a "predatory lender", right?

Mortgages are sold by people in a dual advisor/salesperson role, just like auto mechanics (and doctors and plumbers...). Non-predatory lenders give people reasonable advice about what kind of mortgage people can afford, just like an honest auto mechanic gives reasonable advice to people on what repairs are necessary and don't suggest unnecessary services or repairs.

Just as sketchy auto mechanics who try to overcharge for repairs or encourage a customer to have entirely unnecessary service or repairs done, predatory lenders knowingly push people to purchase mortgage products that they cannot afford.

[refurb]

Not sure why you're getting downvoted, I think you make a good point.

You can't on one hand hold people who make bad money decisions unaccountable and at the same time say they should have access to all the high risk opportunities.

It has to be one or the other.

[themagician]

No more risk than penny stocks, options or other derivatives. Or existing "get rich quick" schemes.