Thursday, August 23, 2007

a rider on the tremors

I was intrigued by a paragraph in yesterday's Herald editorial on the subject of the recent finance company collapses:

"In unsecured finance markets that depend on a constant flow of new money to repay maturing loans, fear can be fatal"
I am not schooled in the ways of finance, or economics, law, or even basic hygiene. But even I can read wikipedia, and it seems to my simple eye that all these collapses stink to highest heaven of being ponzi schemes overlaid with only the thinnest veneer of sophistication - but without the common decency to advertise a ridiculous rate of return so at least the first mooks in through the door make a little money. If you are paying investors off with the incoming funds of new investors rather than from the fruits of your wise investment of the original money you scammed from them, then I'm of the opinion that you are a common criminal and should be out on chain gang breaking rocks with the other lawyers and stockbrokers.

The nail in the coffin was David Hutton from the Institute of Financial Advisers, who basically blamed the punters for not doing their homework irrespective of what their financial advisors told them.

What the fuck? Can we have our damn money back from your pack of feeble-minded twats or carpetbagging conmen then? Either the advisors were all too stupid to read or understand the prospectuses they foisted onto their luckless charges, or they were a bunch greedy slackgrabbers in the pocket of the finance companies, selling investors off like a pimp. Either way they should be answerable to the people who have lost their money.

1 comment:

dribblor said...

Quite simply.......Amen