I remember back during the bad old days of evil empires, the US media would never fail to point out that Pravda was a propaganda mouthpiece for the Soviet government whenever they quoted material in news reports from that media outlet. Along those lines I’d be remiss if I did not point out that publishing government economic data uncritically or hosting self servicing shills and blowhards as Fox 8 did Thursday night is essentially the same folks.
Mr CLS on Yahoo All bumped up an old post titled The Fiduciary Principle: “No Man Can Serve Two Masters. Somewhere in that post title is why the media should never host a stock broker opining on the economy. It is also the reason the brokerage industry is fatally flawed IMHO as the stock salesman at your local Edward Jones office that masquerades as a financial expert is in reality incentivized to sell you investments that makes them the highest commission.
I cut my blogging teeth on subjects such as these in the many years I blogged on financial issues on Yahoo and such is also the reason you see me posting as Sop to this day on Slabbed as the Sop franchise has gravitas in certain high finance circles world wide and I wanted those folks to find this project called Slabbed. And I’m likely to point other media outlets peddling propaganda as news such as Fox 8’s did in their Thursday Night lead story in the coming days.
And a final ps to Analystwoman on Yahoo All. Glad to see you caught on ma’am. 😉
sop
You've got it absolutely right on the fiduciary issue. I think it's the #1 issue facing the financial planning community, more than compensation (fees vs commissions). I don't care how you get paid, as long as you disclose how and how much you get paid, and you agree that you will only work in your client's best interest.
It always amazes me how little people know about this issue. You'd never go to a doctor who didn't have to work in your best interests, yet people go to financial advisors who only have to recommend "suitable" investments but not actually agree to work solely in the client's best interest.
I recommend Fee only financial planners. I've seen brokers as recently as this year put folks in their 70s out on margin in order to stuff their portfolio with funds that all had sky high 12-B1. In this case the guy was using a stock his clients brought to him that had a huge unrealized gain. He had been on them to sell it and he would have forced the issue had they stayed out on margin as the market declines would have stopped them out of it via margin call. My clients claimed not to know they were in debt to their broker dealer until I pointed it out to them last April at tax time.
The worst is Dave Ramsey and his bogus use of religion to line up marks.
sop
My latest was running across a family with an Equity Indexed Annuity with a 15 year surrender charge. 15 years! Yet the guy who sold it to them made about 10% up front, so what does he care?
I think all of the TV talking heads should be forced to sit down face to face with real families facing real financial problems before they go about spouting their advice which is really just "entertainment". It's one thing to give advice from a distance, it's another to be accountable to a real person for their hopes and dreams.
Oh, just think of the possibility I could take a shot at some investments, hum. Damn, court damn lawyers damn system damn, did I miss someone ? . I just don't know given to the obvious much of my money has gone to politics, I question gray matter in certain persons. Being tied to the overall system of the debt and its market reactions.To put one's head around the reason this started and our ten year turn down held a starting point. A cause to breakdown the U.S.A. monetary power was an attack on the twin towers. No doubt along with the other attacks of the day America lost a lot. This isn't the fix all but consider the cost starting with a surplus to the current. If a plot who was in on it ? We'll always ask.
My point is we know what has changed since 911 [ war ] so just how was it known it would take a war to make us broke? Hello! It always seems like it was a two part system where the U.S. get's suckered in or was it tricked into action? Uncle Sam was to wide in his sweep. I think we've covered most conceivable world policing operations which could be had. Talk was once that the Navy wanted new ships and even with radars we got Pearl Harbor.
This all started with hunting down some 60's looking hippy dude which took over ten years. Don't know the height of defense shares but I do recall $ 5,000 coffee pots $ 700. toilet seats etc. I remember when that all started at the very beginning of peace through strength and a lot of deregulation oh, and cuts. It certainly takes knowledge and perception to make it in sop's world. Way to go! As for me I'll be shining my celestial crystal ball for those scratch offs and lotto tickets. Don't know about the Greek of all this. Which way is out?
The few folks running things in Washington care little for reality. The leaser of two evils would be a tax on the use or growing of marihuana with alcohol and tobacco. As for cuts let's start with reforming the entire justice system including the F.B.I. Create a flat tax for everyone including entitlements and eliminate the E.P.A., D.E.A. and I.R.S. We need more self employed farmers not just vegetation but meats and seafood. Oh yeah following the right master first would definitely make all the difference.
AMEN Robert Marie.