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

[polaris93.livejournal.com]

That applies to just about everything we do today -- so many people are convinced that if they get stupid and hurt themselves or get killed by it, they or their estate can sue the bejayzus out of somebody, which will take care of everything. This negates everything we learned over four billion years in Evolution 101: actions do have consequences, and some of them are both extremely important and subject to great big Darwin Awards if we guess wrong. One more excellent reason for tort reform: at least in the long run, self-chlorination of the gene-pool is never a bad idea.