Vox Populi

By Steve Cinelli , CrowdFundBeat Sr. Editor, @stevecinelli
Earlier we wrote on the power of the crowd to determine the future of Greece via its referendum.  Well, it appears that the voice of the people has become clear, that economic self-detemination is fundamental.  Certainly the “no” vote is not a GREXIT guarantee, rather a possible new positioning to the idiocratic nature of the banking troika.   Yes, the IMF, ECB and EU have lent hundreds of billions to a failed economy, with even a further anemic outlook.  And true, they want their money repaid.   But the debate should and could be elevated into how funds have been deployed, via an archaic banking system which has done little to open private sector activity.   We can discuss pensions and public sector spending, which will forever be a drag on a future, but the requisite  risk aversion under a regulated banking apparatus, impacts not only Greece but many other Western economies.
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The fundamental nature and practice of commercial banking, with its leveraged capital structures, thin margins, use of government insured liabilities (i.e., deposits), and snowballing levels of regulation and compliance costs, may have exhausted its viability as a business model.   In the US and elsewhere, new methodologies of finance are taking shape in the shadows, where financing is provided outside the conventional banking system, funded with true risk capital, without the fall back of deposit insurance. Whittling away at profitable banking activities, the new players are not just taking a new approach given the dilatory nature of banking, but advantaging a business model that may have become obsolete.
Using the commercial banking industry as the predominant means to deploy capital into the private sector may have stood the test of time, but now there is a need for a shift and the recreation of a banking construct, particularly in markets not vibrant with venture capital and private equity.   Might Mario Draghi and others look to next generation capital formation and deployment as a vehicle for a better Greece, or Italy, or Spain or Portugal?    Imagine, crowdfunding, a somewhat nascent concept, becoming the necessary path forward for these challenged economies.

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HEADLINE NEWS

Marketplace.orgCrowdfunding for your lifeMarketplace.org"When I took that phone call, and I learned that this was just going to completely uproot my whole life, I'd say I spent maybe 10 seconds or so only freaking out about myself and whether or not I would die. And then imm [...]

The HinduYoung Moroccans change lives with crowdfunding - The HinduThe HinduAccess to funding is vital for young Moroccan companies. Two young men have recently developed an application that enables projects to get financed by ...and more » [...]

TIMEA Crowdfunding Effort Launches to Commemorate Khadija Saye, Artist Killed in London InfernoHyperallergicOn Saturday, friends and supporters of the artist Khadija Saye — who died in the devastating Grenfell Tower fire in west London last week — launched a crowdfunding campaign to c [...]

Santa Ynez Valley NewsTrikke Tech consolidates operations in Buellton, launches ...Santa Ynez Valley NewsTrikke Tech Inc. has consolidated all its operations at a new location in Buellton and launched a crowdfunding campaign to help the company expand and ...and more » [...]

CBS NewsNow you can crowdfund a 529 college savings plan - CBS NewsCBS NewsIt's getting easier to have friends and family add their contributions to these accounts for college savings.and more » [...]

ForbesThis $130 Million Fund Is Leading The Way In Real Estate CrowdfundingForbesWhen people think of crowdfunding, the first word that jumps to mind is Kickstarter. But crowdfunding is not limited to supporting the next card game or independent film. Crowdfunding is becoming a viable [...]

Forbes"Make Yourself Available" - An Audio Entrepreneur's Tips For Successful CrowdfundingForbesIt takes a brave individual to launch Bluetooth speakers and headphones into a crowded audio market. Take a stroll around your local consumer electronics stores and you' [...]

WMFD.comLegislation Permitting Intrastate Equity Crowdfunding PassesWMFD.comCOLUMBUS, OH - State Representative Mark Romanchuk (R-Ontario) Thursday applauded the Ohio House for approving legislation that permits, in certain circumstances, intrastate equity crowdfunding, with the goal [...]

Business InsiderCrowdfunding for medical expenses - Business InsiderBusiness InsiderAlmost half of the money raised on crowdfunding sites like GoFundMe and YouCaring is going toward medical expenses. Medical campaigns make up $930 ...Americans Losing Health Insurance Turn To Crowdfund [...]

PC GamerAshes of Creation launches 'Summer Crowdfunding Extension ...PC GamerThe ambitious MMO Ashes of Creation was successfully crowdfunded in just one day last month, before ultimately accumulating a staggering $3271809—this ...and more » [...]

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