Sound investment

[unixronin]

This article, which specifically discusses Goldman Sachs' defense of the charges against it, reveals what I consider to be a strong element of what's wrong with the financial markets of today:  It's considered OK to make bad investments, because you can always bet against them or find other ways of pushing the risk off onto someone else.

Wouldn't it be better to research potential investments more thoroughly and only invest in the ones that seem sound?

Of course, when you can't trust the bond ratings, how do you know?

Well, then perhaps it might be better to just stay away from financial derivatives altogether?

Comments

[merlinpendragon]

Here is an idea: make it illegal for corporations/banks to buy stocks they know will loose value. Make the penalty for banks knowingly investing in a bad stock equal to double the amount of money the stock looses.