An investment fund whose charter is written in software can still misallocate funds.
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This will drastically misallocate necessary funding for services such as public health and education, harming those most vulnerable.
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They have said it is too dynamic of a threat to lock into a statute and doing so could tie their hands and misallocate capital, Walden said.
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Infrastructure is sort of that good spending in the middle, where even if you do misallocate resources a little bit, you still have something to show for it.
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When unelected bureaucrats misuse, mismanage and misallocate taxpayer funds, it not only takes resources away from vital government functions, it continually weakens citizens' faith and trust in their government.
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Critics say local governments, especially in the frequently hit coastal provinces in China's east, misallocate funding or fail to spend enough on defenses against floods and other problems caused by heavy rain.
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The underenumeration of racial minorities would also misallocate billions of dollars in state and federal funds for housing assistance, job training, community development and a variety of social services that should be distributed on the basis of census counts.
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Infiltration also provides the opportunity to plant false information, lead the government to misallocate resources, to steal funds, weapons, equipment, and other resources, and ultimately aid in weakening and delegitimizing the government.Rosenau, Subversion, pg. 6–7. The targets of infiltration are not limited to the groups and institutions mentioned above. Economic industries and universities have also been the target for infiltration.
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A second rationale is that P3s enable off balance sheet accounting of infrastructure. They allow governments to continue investing in infrastructure without adding to the public dept. This practice has been seriously criticized by auditor generals as an accounting fallacy, as the costs of the projects must still be paid in full by the government, but with deferred payments. These schemes can misallocate the risk between partners or increase projects costs for governments in the long run.
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Other stock market bubbles of note include the Encilhamento occurred in Brazil during the late 1880s and early 1890s, the Nifty Fifty stocks in the early 1970s, Taiwanese stocks in 1987–89 and Japanese stocks in the late 1980s. Stock market bubbles frequently produce hot markets in initial public offerings, since investment bankers and their clients see opportunities to float new stock issues at inflated prices. These hot IPO markets misallocate investment funds to areas dictated by speculative trends, rather than to enterprises generating longstanding economic value. Typically when there is an over abundance of IPOs in a bubble market, a large portion of the IPO companies fail completely, never achieve what is promised to the investors, or can even be vehicles for fraud.
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