Investment Community
Do You Trust The Financial Sector?
I'm not sure I would give money to some of my relatives.
I know I wouldn't give money to a lot of my firends.
So why do so many of us give lots of money to people and institutions we know little about?
Most of this investing must be built on a level of trust.
We trust companies to use our money return it to us in larger amounts.
We trust companies to refrain from doing stupid things - even we know there is a risk we could lose everything..
We also must have trust in the financial sector in terms of reporting and accountability.
Do we still have this trust to send so much money to Wall Street?
Many people have lost a lot of money in the past few years. The companies were shown to be spending our stock money foolishly with stupid decisions, irresponsible investments, huge executive salaries, and crazy spending on things such as bad products and office furniture.
Our financial sector has been deregulated to the point of having very little oversight and accountability.
Maybe we should make that loan to our uncle for his crazy idea? Or do we still think that sending our money to Wall Street is a good idea?
I know I wouldn't give money to a lot of my firends.
So why do so many of us give lots of money to people and institutions we know little about?
Most of this investing must be built on a level of trust.
We trust companies to use our money return it to us in larger amounts.
We trust companies to refrain from doing stupid things - even we know there is a risk we could lose everything..
We also must have trust in the financial sector in terms of reporting and accountability.
Do we still have this trust to send so much money to Wall Street?
Many people have lost a lot of money in the past few years. The companies were shown to be spending our stock money foolishly with stupid decisions, irresponsible investments, huge executive salaries, and crazy spending on things such as bad products and office furniture.
Our financial sector has been deregulated to the point of having very little oversight and accountability.
Maybe we should make that loan to our uncle for his crazy idea? Or do we still think that sending our money to Wall Street is a good idea?
Replies to This Discussion
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Permalink Reply by lea on -
I trust some companies. It is hard to research them and find the good ones, but they are out there.
I don't trust the financial sector as a whole. It needs to be regulated better.
I think lately the financial sector has been so deregulated that it has become a wild west playground for the speculators. I think this has hurt the investors who are trying to find good long-term investments. Putting money into the stock market has become more of a short term game to people instead of long-term investments. This is bad for the stock market overall.
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Permalink Reply by Willie on
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I agree, I think the overall structure of the financial system was so deregulated in the past few years that it became more like a casino.
Hopefully this crisis will allow the rules to be tightened a little bit so people can trust that their investments are sound and not being used for risky endeavors.
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