with the input provided by cable TV, cable radio and the Internet it’s hard to sort out the things that happened to us and identify accurately what is the worst thing that happens to us each day. I just watched and had the from the people who are furious over the taxpayer dollars that were in and tested in the Solyndra energy fiasco and then immediately a program dealing with the pending Senate inquiry tomorrow on the M F Global scandal where it is apparent investors monies were mingled with corporate monies and all of the monies (or at lease most of the monies) simply disappeared and the CEO doesn’t know where they are.
My first thought was, is one of these tragedies any worse than the other? Here’s what I have come up with so far– in the situation with M F Global, farmers and other people with temporary surplus monies that they were investing to increase their investment potential when next year’s crop time rolled around were unaware that their hard earned money was being invested in high risk foreign bond issues in countries that have been in the news for some time as being high risk.
The similarities between that situation and the one where our government took our tax dollars and made what many experts said was a high risk loan to the company whose business model predicted failure in the immediate future were startling. We investors, who paid our taxes according to the code had no idea that that money would be invested in a solar energy company. How naïve of us, that we didn’t realize that it is now the business of the United States government to invest in companies that ordinary venture capital companies will not touch to invest the tax dollars you a nice send to Washington DC.
So we have two examples of people investing their money in things they do not understand or have working knowledge of. What can we do about both or either one of these examples of bad investment?
Every two years we vote for somebody new or maybe for the old guy or gal who promises they will do things different in the coming session of the U.S. Congress. The farmer who had the excess funds to invest until next years planting trusted the security salesman when he told him he couldn’t lose.
Due diligence. It’s a term all of us need to reacquaint ourselves with. Simply put, it means study your facts and information available to you before you invest your money and before you cast your vote.