Tuesday, November 20, 2007

Is It Time to Point the Finger?

Is It Time to Point the Finger?
At the conclusion of every boom and bust cycle the finger pointing starts. Who should be blamed for this crisis? After much analysis and soul searching we generally agree that the real culprit is greed and stupidity.

Greed applies to the ones who benefited from this fiasco and stupidity (along with some element of greed) applies to the losers. Guess where the finger is pointing today. The banks were greedy and the folks who bought houses they could not afford stupid. Is this different from the dot-com bust? The banks, VCs and corporations make the big bucks and the schmuck who was day trading the next hot IPO lost a bundle.

Will it happen again? Certainly. There is always someone selling a dream and a short cut to riches and glory. That get-rich-quick scheme will usually attract the naïve and stupid. And life goes on ...

Bottomline – there are no short cuts in life. Be smart - work hard, save, invest, learn and prosper.

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