Dear Reader,
If you haven’t been in a coma the past several months you’ve at least heard about all the problems that the bankers, mortgage bankers, and investment bankers are having with sub-prime mortgage loans. They made these bad loans then hid them in bond packages so they could sell them, as if they were good loans.
Now, this little scam is coming back to bite them on their financial butts.
The most notable loser, to date, is Bear Sterns. This venerable old brokerage firm is now bankrupt but being bailed out to save face. With your money.
How many more of these banking firms will follow? Hard to tell since they have no idea what their alleged assets are really worth. The whole industry might be bankrupt for all we, or they, know.
But, that’s not the point I’m trying to make.
The ex-head of Bear Sterns is said to have had stock in the company that just a little over a year ago was worth $1 Billion. That same stock is now worth an estimated $61 Million. A nice little 96% loss.
Which gets me a little closer to my point.
These executives are paid millions, if not hundreds of millions of dollars each year to make profitable decisions. They’re suppose to be the Imperial Wizards of high finance. Yet, this one in particular wasn’t smart enough to sell his shares before they crashed. Just how smart is this?
How many more are in the same boat?
Now I know its hard to feel sorry for someone who went from being a Billionaire to being just a multi-millionaire. Even someone who has seen his investments go from $61 Million to just $2.44 Million, its hard to feel real sorry for them. But, you must admit, these loses are large enough to make most everyone change their style of living.
But, more importantly, what about the poor schmuck that had $610,000 in his 401K or IRA and now has just $24,000? They went from just about ready to retire to no chance in hell. These are the people who got totally screwed.
Which finally brings me to my point.
Why are people still using these companies, run by such incompetent thugs, to handle their investments?
It seems to me, that anyone with more than two live brain cells would take every dime they have in their investment portfolio, IRA, 401K or whatever, and run from these thieves.
And, why would anyone buy their stock? Do people actually expect these same people to suddenly become honest and competent?
Hey, if you got some money you just want to flush down the toilet, instead of giving to the thugs on Wall Street, send it to me. I’ll even send you a thank you note.