Crowdfunded companies are ‘ghosting’ their investors – and getting away with it

Imagine you invest US$500 to help a startup get off the ground through investment crowdfunding. The pitch is slick, the platform feels trustworthy and the company quickly raises its target amount from hundreds of people just like you. Then – silence. No updates, no financials, not even a thank-you.

You’ve been ghosted – not by a friend, but by a company you helped fund.

Crowdfunded companies are ‘ghosting’ their investors – and getting away with it

Imagine you invest US$500 to help a startup get off the ground through investment crowdfunding. The pitch is slick, the platform feels trustworthy and the company quickly raises its target amount from hundreds of people just like you. Then – silence. No updates, no financials, not even a thank-you.

You’ve been ghosted – not by a friend, but by a company you helped fund.

FEDS Paper: The Banking Panic in New Mexico in 1924 and the Response of the Federal Reserve

Mark CarlsonThere was a banking panic in New Mexico in early 1924 when about one-fourth of the banks in the state closed temporarily or permanently amid widespread runs. The Federal Reserve used both high profile and behind the scenes operations to calm the panic. This paper provides a history of this episode and explores how conspicuous and inconspicuous aspects of the Federal Reserve's response interacted to bolster confidence in the banking system.

FEDS Paper: Policy Rate Uncertainty and Money Market Funds (MMF) Portfolio Allocations

Samin Abdullah and Manjola TaseWe find that an increase in policy rate uncertainty is associated with an increase in MMF portfolio allocations towards assets with shorter-dated maturities. We also find that the direction of uncertainty matters: MMF portfolio maturity is more sensitive to uncertainty when it relates to changes in expectations for a larger increase or a smaller decrease in the policy rate than when it relates to changes in expectations for a smaller increase or a larger decrease in the policy rate.

FEDS Paper: Recession Shapes of Regional Evolution: Factors of Hysteresis

Hie Joo Ahn and Yunjong EoThis paper empirically investigates sources of hysteresis, focusing on downward nominal wage rigidity and the gender gap in the labor market, using U.S. state-level payroll employment data. Employing a Bayesian Markov-switching model of business cycles, we identify U-shaped and L-shaped recessions, which correspond to quick recoveries and hysteresis, respectively.

IFDP Paper: Expanding the Labor Market Lens: Two New Eurozone Labor Indicators

Ece Fisgin, Joaquin Garcia-Cabo, Alex Haag, and Mitch LottWe present a principal component analysis of euro area labor market conditions by combining information from 22 labor market indicators into two comprehensive series. These two novel indicators provide a systematic view of the current state and forward-looking direction of the euro-area labor market, respectively, and demonstrate superior forecasting performance compared to existing indicators.

Cutting waiting lists for mental healthcare would save money – and people’s jobs

There are more than 1 million people on NHS waiting lists for mental healthcare in the UK. Many of them have to wait weeks or months before treatment can begin for conditions such as depression and anxiety.

And according to recent figures from the BBC, there are 12 times more patients waiting longer than 18 months for mental health treatment compared to those with physical conditions.

Pages

Subscribe to Front page feed