Posted on 08/24/2008 1:47:59 AM PDT by TigerLikesRooster
WALL ST. SHIFTS BLAME FOR CRISIS TO STUPID INVESTORS
By JOHN CRUDELE
August 21, 2008 -- YOUR investments could look like a pack of cigarettes if the government takes the advice of a blue-ribbon panel of experts.
In a report sent recently to Treasury Secretary Hank Paulson, a panel headed by Goldman Sachs Co-Chairman Gerry Corrigan suggested that complicated investments "must have a financial health warning displayed prominently in bold print."
Ironically, the recommendation is the product of top executives from Lehman Brothers, JPMorgan Chase, BNP Paribas, Bank of America, Merrill Lynch and several others - all of which either created or did business in the very same complex investments on which they now want to attach warnings.
The warning label comment is just a small part of the 138-page report entitled "Containing Systemic Risk: the Road to Reform."
And the parts of the report that you and I would understand say things like "the financial crisis of 2007 and 2008 [is] the most severe we have experienced in the post-war period." That's World War II, in case you are getting your conflicts mixed up.
(Excerpt) Read more at nypost.com ...
LOL. Too late.
Ping!
Not too late for all them thieves on the street who racked up their 300K bonuses!
Too late for Grandma Iowa who had all of her 40K in Fannie Mae, though.
Sometimes a mattress is better. It’s a free Country, and it’s citizens may react accordingly.
Same old problem.
Different generation.
Something too good to be true is not true.
Re: “Sometimes a mattress is better. “
Unfortunately inflation will spend it, if you don’t invest it. The US needs entrepreneurship education.
A little sarcasm there. Forgot the tag. I am investing heavily right now and would suggest others to do also.
Tell that to the folks who invested in Enron.
Or Worldcom.
The guy that sits across from me lost 125K on ENRON. He ain’t happy at all.
Thieves? Of course you have proof that all those who receive bonuses on Wall Street broke the law? No? How about at least a sizable % of them? No?. Well then let us in on the specifics of this seemingly outrageous charge.
"Too late for Grandma Iowa who had all of her 40K in Fannie Mae, though."
Fannie Mae is a STOCK and as such it is subject to the forces of the market. If investors aren't even aware of the possibility that a stock can go DOWN as well as UP then I personally haven't any sympathy. People like yourself appear to want to remove risk from the market. The problem with that grandiose idea is along with the risk being removed so will the potential for reward. People like Grandma Iowa who live on fixed incomes and are retired should be 80% in bonds and cash anyway. Anytime you call your broker to by a stock you will be asked if you have read the prospectus and if you say no the purchase is not made on your behalf and one is sent for you. The prospectus lays out the pitfalls of investing in the stock including the claim it can be adversely affected by general market conditions. If someone hasn't the stomach for a loss then they ought to put their money in FDIC insured CD's.
What do you like?
I’m heavy in the belly.
Grandma can still lose it there too if she doesn't follow the $100K rule.
Grandson lives by the same rule.
You’re a brave guy. The only exposure I have to commodities is through a mutual fund. One of my strongest assets is that I definitely know what I don’t know.
Good luck.
The next shaker is the NWS saying this winter will be warm. Buy a new winter coat, Opey would. :^)
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