Skip to main content
malinvestment

malinvestment

2 9.9
Money put into projects that fail to make money because of bad choices or wrong signals
  • noun
  • /ˌmælɪnˈvɛstmənt/
  • Specialized
translation icon : mala inversión
  • The economist explained that malinvestment often results from following misleading signals in the market.

The market will require the liquidation of malinvestment and excessive debt.

Autoplay Next

Examples

  • But with many of the projects left unfinished, a lot of malinvestment will have to be realized.

    Blog text (14)
  • Economic crashes are a consequence of massive amounts of malinvestments—malinvestments which can only be caused by artificial credit expansion.

    Blog text (32)
  • This is a big part of their malinvestment problem.

  • I am sure we could look at every economy in the world and point to malinvestment.

    Blog text (19)
  • The government is in the way of innovation because it creates malinvestment.

    Blog text (11)
  • The market will require the liquidation of malinvestment and excessive debt.

  • The losses associated with this huge malinvestment are real, even if they're not being recognised.

  • Austrians suggest that credit expansion causes malinvestment.

    Blog text (34)
  • A painful adjustment process takes place as malinvestments are liquidated.

  • When risk has been transferred to the taxpayers by guarantees, giveaways, and subsidies, then speculation and malinvestment are incentivized.

    Blog text (24)

Synonyms

waste of money
vsmalinvestment
28 3.0

An amount of money spent without getting a useful result

occurs when funds are directed by false signals or bad judgement causing loss
misallocation
vsmalinvestment
  • Specialized
3 7.5

A situation in which money or other resources go to the wrong place

sends funds based on misleading signals and causes loss
money down the drain
vsmalinvestment
  • Informal
2 4.2

Money people waste when they make a bad choice

refers to losses caused by misled funding decisions rather than simple carelessness
squandering
vsmalinvestment
1 7.2

Using valuable things like time or money in a wasteful way

results from mistaken placement aiming for profit rather than careless luxury
overinvestment
vsmalinvestment
1 6.2

Putting too much money into a project or company that does not pay back

involves waste because funds go to unproductive places from poor judgment

Surface Forms

malinvestment singular

Morphology

malinvestment = investment (transparent) = mal + invest + ment

The prefix 'mal-' (bad) attaches to the common noun 'investment' to yield the sense 'bad or unproductive investment', a directly derivable meaning.

Etymology

Malinvestment joins mal- meaning 'bad', as in malfunction, with investment, meaning putting money into something. So, malinvestment means a 'bad investment' — money put into something wasteful or that does not make money.