Today, the financial press was rife with stories about more subprime related writedowns. Now Variable Interest Entities (VIEs) threaten to add to the pain. Look for more writedowns and possible bank and broker restructuring.
In my posting entitled "Ain't That A Shame. You're The One To Blame " I pasted financial advisers for not understanding auction-rate securities. Now PIMCO's Bill Gross is jumping on the personal responsibility bandwagon. He calls ARS "Old-maid cards foisted upon investors"
Brokers I have spoken with defend their decisions to use ARS as short-term investors because, as some claim, firms have stated they would support auctions or, they were led to believe successful auctions were guaranteed.
I have the opportunity to become a broker. My concern is that I am not a good asset-gatherer as investors like the slick sales type, not the knowledgeable analytic type who will tell it like it is.
Here is a message to investors. If you are disappointed with your broker, look in the mirror to see the one to blame.
2 comments:
not everyone uses the used car salesman approach...
Correct. However, if you are with a "used car salesman", it is your own fault. Substance over style.
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