For Love of Small Investors

Universities cannot seem to limit their Administrative Costs. Now they will probably need a position such as Dean of Donor Restrictions, whose sole preoccupation will entail convincing Donors to grant Money without restrictions, or else for something meaningful. The trouble will remain, though, that the focus of Research alters over Time, and money will always result in over-funded ventures under what is a sort of half-life exercise. I personally would like to employ some form of 100% tax after 35 years, but Academia will pressure for freedom from Restrictions after some probationary period. Everyone’s desires would be fulfilled if they would send all Gratuities to myself; I promise to expend the funds in appropriate manner, and keep Expenditures in Las Vegas to a minimum (no more than a $100k per month).

Gretchen Morgenson needs to keep her Contacts within the Finance industry, so does her best to clearly explain the debacle without naming Names. Everyone noticed that the auctions were going South, meaning that the Money was not flowing in, and the heavy Players were quitting the auctions because of the lack of Capital generation. The heavy Investors, who had major influence at the brokerage firms, told those firms to find ‘Some Rubes from Kansas’ to buy themselves out of the auction securities in 2007. The brokerage firms complied, and Everyone’s Profits margins remained Good for another half-year, except for the small Buyers who got trapped with the down-rated Securities. The small Buyers, rooked by the touted Credit of the auctions which had already become history, now seek to draft Water from a Stone; the Funds already spread throughout the Investment firms, with the brokerage firms short on Cash due to the whopping Bonuses given out to Employees for the successful Sale of these securities. Welcome to the wonderful world of High Finance!

Here is a basic Advertising gimmick, a Statement which will outrage all Parties concerned with the preparation of the article. Small Investors should know and understand that the Predators are out there, want your hard-earned funds, and care nothing about the Returns you will receive; except that it may inhibit their own personal Profits growth. Small Investors who forget that basic formula may as well forget their Money also. There is no implied Safety in Investment, unless and until you have the said guarantees in legally-enforceable Contract form; this itself a highly doubtful and Time-consuming process. I know a Person whose Estate was finally paid the final Payment of a 30% Settlement of a S&L failure covered by State and Federal agencies. The Point in the Story was that the Failure occurred while he was in his Sixties, his death was in his Eighties, and the Payment to his Estate finally brought the Recovery up to 30% of the invested value. lgl