This morning the world will wake up to an astounding story of thievery and deceit. One of Wall Street's well known fathers has confessed to creating a 'Ponzi scheme' that has stolen some $50,000,000,000.00 (that's billion) from pension funds, businesses, savvy hedge fund managers and individuals from Titans of industry to grandmothers who trusted 'the system'. Story here.
Perhaps this will help Joe and Josephine Investor realize the financial industry is set up, not to make clients money, but to sustain and enrich itself and those who created it. As a business owner I understand that making a profit is what business is created to do. This allows for salaries and retirement systems to be funded. Yet it appears, as has always been true, some among us have taken 'gain' at others expense to a whole new level.
Wall Street, the banking system, and insurance industry today reminds me of shark infested waters and from my point of view the 'innocent' rarely survive with their money without building a cage around their wealth and understanding the need for an advocate or trustworthy guide for the dangerous waters. I believe we are seeing a shift in this industry and that the financial services industry, or any industry for that matter, can only survive long term if it's participants follow the Golden Rule that has been given to us all. A reckoning is taking place and many crooked players who have stolen from others may be exposed for what they are and the 'financial system' has become...precarious at best. This doesn't leave us without hope. It should remind us not to put our confidence in wealth or prices but to trust in our unshakable King.