Yep, this was part of the problem. Investing became “amateur hour”, how else could you account for the ridiculous P/E ratios that were out there. Also the amateurs are much more easily swayed by emotion, than sound financial principles.
Mutual funds were supposed to be the savior for amateurs. Spread the risk, diversify across sectors.
Amen.
The Bernie Madoff's had their Ponzi Scheme. But that was peanuts compared to Social Security, Medicaid, and the rest of this %$%& - and everyone knows it.
The "Community Reinvestment Act" under Clinton gave birth to "Redlining" - which meant banks were forced to give bad loans to people who could never hope to pay it back.
Americans who signed "Liar Loans" are guilty of their own greed, and deserve to live on the street. Now, Obama the Hitler is vowing to "FORGIVE" their loans this week based on income and race.
The REST of us will pick up the Tab. There is going to be a Tax Revolt in America the likes that no one could have foreseen. Moreover, Alaska will succeed and become its own Nation.
Sounds like a money making opportunity!