Many investors and Wall Street professionals alike are glad to see this year come to an end. The markets had their worst showing since 1931 and, unfortunately, many were caught in this downdraft without adequate portfolio protection. That’s simply a nice way of saying that they had no exit strategy and now have to live with the unenviable task of having to spend many years trying to make up losses.
Additionally, we all got well acquainted with fraud and deception as well as the ineptitude of government to deal with a crisis via senseless bailout attempts, the final result which will be still forthcoming. Desperately throwing good money after bad has never brought the desired results.
In light of the current financial crisis, reader Terri sent me this quote from Thomas Jefferson, which originated in 1802:
‘I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.’
I am continuously amazed by the clarity of thinking of our forefathers. Maybe the simpler life which they lived with no TV, or other useless entertainment, caused people to actually sit together and have meaningful conversations with different viewpoints and without the negative impact of having to be being politically correct.
What do you think?