IMO, Dogecoin is a kind of malinvestment in a long term horizon. In terms of short-term gains, it’s been very flourishing for the last couple of weeks, but it’s just a memecoin with no fundamentals, no real usage. My view is many newbies have been lured into the hype/belief of never-ending big gains, not looking beyond the project itself to seek better opportunities with maybe less gains in a short-term, but with more promising future on a larger scale.
Personal malinvestment of college tuition depending on the field of study. All costs are rise because of government backed loans and laws preventing the cancellation of the debt if the student goes bankrupt. This caused banks’ risks of the loans to decrease and therefore made it easier to achieve get loans. Particularly when gov’t started to make the loans themselves. Easy money through low risk loans increased the demand for enrollment causing universities to increase their prices. Poor decision making by students (and societal influence) to pursue degrees with low demand in the market place (relative to graduates) caused a lot of “educated” graduates to now be responsible for large loans and without a job to pay it off. It will be interesting to see what affects the proposed $50,000 forgiveness of student loans will have on the economy.
Goldman Sachs. The market decided they should have been out of business. They are only in business today because of malinvestment
There is one Blockbuster left in Oregon and they thrive as a prehistoric relic
Farming is typically a bad investment. The cost of equipment, parts, taxes, land leasing, seed, fertilizer, pesticides, labor, fuel, etc. make it so. For example a new harvesting machine will cost around $400,000 in the U.S. This is not only a high price, but a loan must be taken to purchase it which you must pay interest on. Also, the value of the machine depreciates every year. Commercial farming in the U.S. has so many different expenses that unless you are a farmer of a large scale, or own all of your equipment, it is rarely a worthy investment.
In Japan, exorbitant beer taxes are forced upon the beer industry which lead to the creation of low-malt beer-like substitutes called happoshu that are so bad they have no market outside of Japan’s taxation authority. So a lot of money was malinvested into developing, creating, and marketing happoshu beer. Those investments should rather have been done in other more productive activities that actually benefited society.
Bitconnect was clearly a malinvestment by anyone that got involved. It was an anonymous team, paying clearly unsustainable interest rates. Anyone that understands how lending rates work should be able to look at it and realized the whole thing was a scam. Unfortunately they paid a lot of youtubers to pump it on a lot of unsuspecting people.
Recent trading frenzy activity of short-selling GameStop stocks. Investors successfully pushed GameStop’s share price up with astronomical numbers. GameStop’s thunderous stock market journey demonstrates the effect that co-ordinating through social media can have and it may lead to short-sellers to think again about betting against a depreciating company.
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The “Housing Boom” from 2002 till 2007 left construction workers and facilities of many branches idle after the bubble burst. Also, banks did change ratings of bad mortgages and literally cheated to sell them to other banks. a sheer rip off.
To read about Pets.com was also very educating and somehow amusing at the same time. Cheez…
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Enron, an energy trader and supplier, I believe meets the definition of a malinvestment a misallocation of capital. In winter of 2001, Enron crumbled due to greed and deception. On the surface the company looked productive, but after scratching the accounting surface, the books revealed the company to be riddled with debt masked by a corporate shell game.
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Not to mention the stock chart is totally made up anyway.
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In the late 90’s, there were many business that only had one or 2 employers and a website. These businesses would attract investors because it was the Dot Com bubble. It was a bad investment because people invested in something without value.
Covid-19. Its happening in front of our eyes. Excessive risk taken on banks with lots of job loss and low interest rate
With the current hype of r/wallstreetbets there are quite a few stocks that have taken on more risk to own. Specifically, Gamestop. This is a dying company that is no longer relevant in todays economy. That is why so many shorts were placed on this stock. Due to this lack of inherent value the stock will ultimately go down to what is is really worth. in the meantime there is a lot of risk.
I feel the same way about Doge coin. The only reason why it pumps is because famous people are shilling the stupid coin. I don’t really see any value in the coin.
Recently, the US government gave a $600 increase to unemployment payments with what seems to be no type of regulations put in place. 16 years old’s who worked their first job and were laid off received this extra money, majority of people making more in unemployment refused to go back to work because they made more on unemployment. This is a small drop in the bucket but this money could have been much better allocated.
The Channel Tunnel, linking UK and France. Tens of thousands of households in both countries have invested all of their life savings into the project, with the promise of a quick and huge ROI.
But a major cost overrun (around 80%), forecasts of potential usage that were far too optimistic and a considerable general inflation completely deprived those households from any ROI at all…
Holding an Olympics games can be considered a malinvestment, where billions of dollars and years of effort are invested towards holding a global athletic event that takes place just roughly over two weeks to raise a country’s and city’s prestige but little else for the average citizen. Holding the 2004 Olympics in Athens was one of the causes for Greece’s economic collapse years later and austerity measures imposed on by the EU, where there was very little left of value from the Olympics besides husks of derelict Olympic venues. For the 2008 Olympics in Beijing, the Chinese government bulldozed neighborhoods that had existed for hundreds of years with little compensation for those affected.
Here in the US our recent election revealed a plan called Green New Deal. There is not enough money in the worlds GDP to implement it. Abolishing fossil fuels, eliminating modern transportation (air travel) and rebuilding buildings to meet “green codes”. This is preposterous. I’m all for clean air. The air in the US is many times cleaner than it was in the 1970’s. Centralized thinking is the core of this movement and we all know where that leads 
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Printing by our reserve bank caused trillion dollar hyperinflation between 2005 and 2009. Printing was done at an incredible rate and the money supply went crazy. Absolute malinvestment.
our pubilc service departments spend more money on buying up-market vehicles for upper management than they do on carrying out the tasks they are meant to do.
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Social programs instituted by the government of Canada (other nations, as well, and all levels of government - i.e. Provincial and Municipal) are completely ludicrous and unnecessary. The intentions of the programs and the practical “ends” are not necessarily the problem (though some of those should be questioned and altered, as well), but the administration of the programs and the associated costs are archaic and unforgivable in this day and age. The monies allocated to the running of these admin-heavy programs could easily be directed to reducing the tax burden on individual and corporations, being replaced by an Universal Basic Income program, run though blockchain adoption via automation.
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