After chewing on Goldman Sachs’ ankle for a while, this morning the Wall Street Journal is reporting that the federal government is investigating how Morgan Stanley marketed CDOs. CDOs are collateralized-debt obligations, bond deals tied, at least in these instances to mortgage derivatives.
Morgan Stanley and Goldman Sachs allegedly bet against these deals while marketing them for their clients. There’s a shock.
The last time I bought a security on the advice of a broker I lost a ton of money. I make and lose money now, but instead of relying on the advice of a broker I make my own decision based on published company financial statements, SEC filings, news and sifting through the advice of numerous investment experts.
Investment companies are not evil, they are out to make money – just like you and me. If you decide to take your hard earned money and invest it in something you know nothing about, that’s your problem. People don’t want to be accountable for their actions (lets blame someone else for lapses in judgment) and certainly the Federal government says you don’t have to be. The government wants to look out for you’re well-being all the time.
Folks, sometimes you’ve got to do the homework so you can make an informed decision.
Back to the CDO’s – these are offered to investors who are supposed to know their stuff, not passive investors looking for a better mutual fund. These folks are well-equipped to know the risk-reward of their decisions, and if they didn’t think the housing bubble was going to burst, well – too bad.
On the surface it might seem evil to bet against something you’re marketing, but it happens all the time. Your policy with the insurance company is a wager, as is that trip to the pawn shop, the agreement with the bank loan officer and 50 cents you put down on tonight’s ball game.
The American way is to take an educated risk – not an uneducated one. If you have to make a personal decision to hold or fold, and you have to assume that someone is always betting against you.
Another CDO Investigation
After chewing on Goldman Sachs’ ankle for a while, this morning the Wall Street Journal is reporting that the federal government is investigating how Morgan Stanley marketed CDOs. CDOs are collateralized-debt obligations, bond deals tied, at least in these instances to mortgage derivatives.
Morgan Stanley and Goldman Sachs allegedly bet against these deals while marketing them for their clients. There’s a shock.
The last time I bought a security on the advice of a broker I lost a ton of money. I make and lose money now, but instead of relying on the advice of a broker I make my own decision based on published company financial statements, SEC filings, news and sifting through the advice of numerous investment experts.
Investment companies are not evil, they are out to make money – just like you and me. If you decide to take your hard earned money and invest it in something you know nothing about, that’s your problem. People don’t want to be accountable for their actions (lets blame someone else for lapses in judgment) and certainly the Federal government says you don’t have to be. The government wants to look out for you’re well-being all the time.
Folks, sometimes you’ve got to do the homework so you can make an informed decision.
Back to the CDO’s – these are offered to investors who are supposed to know their stuff, not passive investors looking for a better mutual fund. These folks are well-equipped to know the risk-reward of their decisions, and if they didn’t think the housing bubble was going to burst, well – too bad.
On the surface it might seem evil to bet against something you’re marketing, but it happens all the time. Your policy with the insurance company is a wager, as is that trip to the pawn shop, the agreement with the bank loan officer and 50 cents you put down on tonight’s ball game.
The American way is to take an educated risk – not an uneducated one. If you have to make a personal decision to hold or fold, and you have to assume that someone is always betting against you.
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