Local Dollars, Local Sense: How to Shift Your Money from Wall Street to Main Street and Achieve Real Prosperity (Community Resilience Guides) in The Transition Movement

Feb 03, 2018 Michael Jandrok rated it really liked it

For decades now, investors large and small have been placing their hard-earned money in traditional financial products like 401Ks, bonds, stocks, insurance, and mutual funds. The shortcomings of these investment vehicles was brought to light during the last big financial crisis, however. It's still pretty clear that the current world financial markets are unstable and unsustainable, especially given that the current administration in Washington is hell-bent on deregulating markets back to the co For decades now, investors large and small have been placing their hard-earned money in traditional financial products like 401Ks, bonds, stocks, insurance, and mutual funds. The shortcomings of these investment vehicles was brought to light during the last big financial crisis, however. It's still pretty clear that the current world financial markets are unstable and unsustainable, especially given that the current administration in Washington is hell-bent on deregulating markets back to the conditions that set them up for a big implosion some ten years ago or so. China and Russia are taking active steps to become bigger players in world finance as the United States now looks to take a protectionist stance on global trade. There will surely be other players looking to fill the gap as the United States relinquishes its historic role as the arbiter of world economic growth.

Enter the idea of locavesting, the idea that local dollars spent and invested in local businesses have far reaching positive impacts across the entire spectrum of a local economy. I'll admit that I have been interested in this concept for years, but I needed to know more about how to go about actually DOING it beyond just occasionally buying merchandise from a local farmer's market or gift shop. Michael Shuman’s “Local Dollars, Local Sense, How to Shift Your Money From Wall Street to Main Street and Achieve Real Prosperity (Community Resilience Guides)” is an excellent first step in learning how to identify viable local investment vehicles and fund them.

There is a ton of great information here about the power of cooperatives, the magic of credit unions, the potential of targeted investment funds at local banks, and advice on how you can explore the concepts behind truly local stock exchanges. There are also some great ideas on using self-directed IRAs as a local investment tool.

I'll also state for the record that this book is about as politically neutral as you can get. Author Michael Shuman is equally as critical of out-of-control government debt as he is about the harmful effects of corporate greed and malfeasance. Shuman never loses sight of the fact that most (but not ALL) investors want a good rate of return, and emphasizes that local investment need not be a losing proposition. His methods can potentially match and perhaps beat the returns that one would get through more traditional investment opportunities.

The idea of locavesting is beyond party politics, it's an area where EVERYONE benefits and EVERYONE prospers. I really do believe that this is one of the more valuable books that I have picked up over the last few years. I'm sure that I will use it as a reference guide as I begin to explore the local investment opportunities right here in my own community. ...more

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