Why a financial firm chooses to expose their operating capital to junk loans is going to be a historic question. But a bigger one will be why our nation decided to support the mistake of these overpaid CEO’s and why we threw cash at them.
Throwing money at the failed firms won’t help Wall Street; Wall Street is made up of nothing more than human nature and speculation. If Wall Street thinks they will make more money going short than long, they’re going short!
The fact is, if this economy wants to rebuild, it has to rebuild fundamentally by itself. It has to flush out all that was wrong and bad and re-build the right way. Only then will a Financial Firm or Bank be a true reflection of itself allowing it to grow healthy and naturally. And guess what, that’s going to happen anyway, it’s just being delayed by temporary news hype and a touchy feely administration via evening news feed.
Any financial advisor that doesn’t have a failed Wall Street insurance to protect your portfolio should be banned by the SEC. Bear Market Funds, SPDR exchange traded funds or Put options on the Stock Indexes from a Futures or Commodity Broker are all ways your adviser can buy insurance for your retirement, rather than saying “sorry, or oh well” when the market crashes. It’s called a “Delta Neutral” position.
As far as the travesty of the crash, it happens with every generation and with every generation it will work itself out, and re-build.
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