The most popular question I get since writing my book is: What inspired you to write: LOSE YOUR BROKER NOT YOUR MONEY? And to be truly honest, it was stories like these.
Most people go to Wall Street brokers for three reasons: advice, information, and investment management. It took me five years to write my book, and as I wrote, my heart was filled with animosity as my mind speculated the extent of larcenous potential Wall Street could inflict onto the average investor. And once it happened, trillions of dollars in wealth evaporated in 2008. As detailed in my book, I watched the bubble inflate and I watched it bust. People that were closely following “the market” expected a correction. But never did I expect the Market to crash. But it did. Yet a major part of the financial industry, Wall Street, never saw it coming.
Or did they?
A new report reveals that Goldman Sachs and other Wall Street firms are at it once again. In their stunning on-line article in the Wall Street Journal, Susan Pulliam and Liz Rappaport’s, Goldman Takes a Dark View, reveals that Goldman’s current activity surrounding the Euro-crisis mimics their activity during the “financial crisis of 2008.” The finding came from a recent Goldman Sachs report that was intercepted, which according to this Wall Street Journal account, “carries language and details about the markets’ problems that normally don’t appear in research for public consumption.”
First point. You need $10 million dollars to start an account at Goldman Sachs. The best part of this article is that it’s about Goldman Sachs is stealing from the really rich people. But let’s be honest, Goldman is no different than any other Wall Street firm. They’re all cut from the same fabric. If your portfolio hasn’t outperformed “the market” over the long term then they got you too. No one should be happy when someone gets taken.
Second point. This article proves quite clearly that if you’re looking for unbiased information, sound advice, and objective management, you’re going to the wrong place if you’re going to Wall Street.
The pinnacle of this WSJ article proves that Wall Street firms provide investment information, advice, and mangement, to suit their financial objectives first and foremost — not those of investors. Keep that in mind when you hand them your hard earned money. Here’s the excerpt.
Insurance-like contracts?—that rise when assets fall?
Huh?
Listen, I’m a free-marketeer – but Credit Default Swaps (CDS) should be illegal. They’re a Ponzi scheme – built by the banks – your broker and Goldman Sachs included — to book bets and run number schemes to a piggish extent at your expense. They’re famous for that.
And they’re doing the same things right now!
That’s what inspired me to write: Lose Your Broker Not Your Money.
I hope it’s your Muse, too.