If you had the good fortune never to have invested in what may end up being the biggest Ponzi scheme in history, count your blessings. An alleged fraud like this could have happened to any of us, as it did to some of the world's most sophisticated investors. There are lessons here, though not necessarily the ones that have been touted by much of the media.He concludes, after some of the most obvious platitudes, with this grand flourish,
At the same time, don't lose your faith in human nature. I spoke last week to a money manager with an unblemished reputation who had just spent four hours defending herself to a client who said she couldn't trust anyone in the wake of the Madoff scandal. Mr. Madoff is an especially shocking example, but he is an aberration. The vast majority of money managers are honest, hard-working professionals with their clients' best interests at heart. The financial system operates on trust backed up by regulation. Both failed in Mr. Madoff's case, but that doesn't mean everyone is a crook.We subjected this paragraph to Talmudic scrutiny and came up with a big zero. The idea that a person making money from your investing activity in various instruments has "your best interests at heart" just flies in the face of Talmudic logic.
The financial advisor has his or her own interests at heart. He or she will please you and make money for you as long as that serves his or her interests.
The Talmud teaches: If I am not for myself than who is for me?
You and you alone have your best interests at heart. Your FA will never tell you to pull all your money out of the markets and put it into cash. If he did he indeed would be the "aberration" and the "shocking example." That's why you lost all that money this past year.
In October 2007 the big banks knew that you should be cashing out. Did they tell you then? Did they ever tell you?
The WSJ in this article just does not compute. It fails Talmudic scrutiny.