Friday, July 11, 2008

Horse sense........

One of my favorite adages on the behaviour of Wall Street is "where there's smoke, there's fire."

Seeing these massive companies get clobbered is astounding. The pricks who got these companies in such a jam and who made hundreds of millions in compensation are long gone to their sunny abodes. They should be in jail.

The common shareholders who have an ownership interest in these companies via their mutual funds in their 401-k plans are left holding the bag. Great Americans going to work every day, day in and day out, getting their retirement funds pounded quarter by quarter by the greed that these corporate chieftains brought on themselves. It is disgusting.

No one is accountable. They bring in some new chief and set him up for life to maybe "rescue" a company. The dilution of common shareholders equity is also disgusting.

Guys like Franklin Raines and Stanly O'Neill are the worst. Top dogs who fed at the trough while the going was good, knowing full well the piper was on his way. This is insanity with such little regard for controlling risk by these major investment banks.

The government is us folks. Maybe this election will be your wake-up call.

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