When you work hard for your money, which most of us do, it is prudent to carefully consider where you put your nest egg. The number of investigations of financial fraud has skyrocketed while prosecutions for perpetrating that fraud have fallen to shamefully low levels. It appears that the best was to steal billions and get away with it is to become a financial institution.
The shock over several decades of fraud perpetrated by Bernie Madoff is only made more ridiculous by that fact that he wasn’t arrested, he turned himself in. The watchdogs responsible for guarding against fraudsters like Madoff ignored the warning signs. Now we have another big fish involved in fraud. MF Global used investor cash inappropriately, through inappropriate co-mingling of funds, with current estimates of investor losses as high as $1.2 billion. It took their bankruptcy filing to expose the theft. Financial institutions investors trusted MF Global to uphold their fiduciary responsibility and they failed that responsibility completely.
Major banking institutions, who got major loans and bailouts from governments are not only failing to be banks and provide funding to businesses and consumers, they are increasing fees to improve their cash flow while at the same time causing businesses to fail because they cannot get access to cash when they need it. At the same time they are borrowing money from the government, which is us folks, at close to a zero interest rate.
Our governments are failing to hold the perpetrators of these frauds and failures and abuse of the system accountable. So it appears the best way to steal billions is to become a brokerage or financial institution. No one appears to be protecting the investors, a sentiment that has been expressed as “there is no political will to protect investors.”
So where do you want to put your hard earned money?
Holding your own gold is a viable option for protecting yourself from rampant financial institution fraud and failure. Gold is a safe haven investment in an anything goes, very scary world where the financial laws can sometimes appear to be optional guidelines.
Here is some food for thought. If someone steals from a convenience store they are hauled away in handcuffs, even peaceful protesters who are voicing their anger at this system are being charged with a felony, but if you are a financial institution and steal billions from investors you may not have to spend even one day in jail, you may not be held accountable for your crime and you also get to keep the huge pile of cash amassed while stealing from others.
I ask you again, where do you want to put your money?