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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: Fiscally Conservative who wrote (7101)	11/15/2007 9:12:58 AM
From: RonMerks	Read Replies (2) \| Respond to of 50350

With GE's bond fund & E Trades blow up, firms like Vanguard should take out full page ads stating this: A letter from the Chairman: "The year was from from uneventful,however. During the Spring and Summer of 2007,subprime mortgage loans increasingly fell into default,triggering downgrades of investment securities backed by pools of these loans. Many money market funds had investment in(and continue to invest in)these mortgage backed-pools,which can boost fund yields but can create liquidity should the securities be downgraded - as many have been. Vanguards money market funds don't invest in these securities. Our fund managers are focused first and foremost on liquidity and credit quality,and the subprime mortgage securities never passed these tests." Is it just me? I would think that GE with their reputation in the marketplace and in the financial arena- and the same with these investment banks that had individual funds go bankrupt, or suffer huge writedowns- that the CEO's and the Boards would step in and make good on their lack of monitoring credit quality and apologize profusely- promise it will never happen again and then fire those in charge. But, they didn't. How in the hell and why in the hell- would anyone ever trust these SOB's again with pension fund money, or institutional investments? You know why? Because no one really gives a shit about the individual investor. And the institutional money mangers are investing "OPM"- other peoples money. They still collect their paycheck and huge bonuses. And look at the golden parachutes that O'Neil at Merrill and those responsible get for "F'n" up and losing billions. Just once I would like to see a board throw a CEO out on his ass and then sue him for every dime he has coming- no bonus, no retirment, let alone a golden parachute. Ron