- In Chapter 16 of my book, I said the following:
“…Another example of the financial industry making money the old-fashioned way was the sub-prime mortgage fiasco which took place less than a decade ago. It was, in my opinion, the greatest financial crisis in our country’s history and a major cause of the recession of 2007-09. Hundreds of billions of dollars, if not a trillion or more, were lost because financial institutions around the world (led by U.S. firms) sold mortgage-related products that they knew would fail. Furthermore, the financial institutions actually took the other side of the sale.
I truly believe the general public’s lack of understanding of these transactions (or should say, transgressions) is the reason that not one high-ranking official of any financial institution was found guilty of these criminal acts. What occurred in the sub-prime mortgage crisis would be like if GM, Ford and Chrysler had sold cars that they knew would crash and then bought life insurance on the new owners so when they crashed and died, the car companies could profit twice. Trust me, if this was on the news tonight, the public would be up in arms and the car company executives would be going to jail. Yet, that is what happened, and almost none of the financial execs involved are being held legally accountable…”
As Greta Van Susteren notes, more culprits of the last financial crisis walk away scott-free!
- After being party for the better part of three decades to the façade that active money management is a worthy process for most investors, yours truly said adios to any involvement in active money management. While Nobel Laureates have already shown that about 80% of all money managers underperform a low-cost Index Fund (and the 20% who do, almost never repeat the following year, thereby making virtually all money managers not necessary for most investors), we once again we see more damning evidence to active money management. But hey, what would all these managers, the financial advisors who sell their services and the many media outlets that spend day and night reporting on this game board so tilted against the average investor, do all day if their façade fell apart?
- Bubbles, top formations and weakening economies.
- Japan’s “end-game” in sight
- Something out of Hillary’s mouth you can believe
- The victims of the 911 attack, their families and all the 911 First Responders who have become sick and died from aiding after the attack, DEMAND these 28 pages be release!