3. The fable of the experts: The public is told that they must listen to the experts from the investment houses who know where to invest because they are experienced stock exchange people.
Well, what did IBI CEO Zvi Lubetzky say in April 2008? “There is no bubble in the share market, the bank shares are a fantastic bargain.” And what did Migdal Capital Markets CEO Yaakov Weinstein say in May 2008? “The climax of the crisis is already behind us.” And what did Meitav chairman Zvi Stepak say in January 2008? “The attractiveness of the shares market is increasing.”
Since then, the markets have collapsed and anyone who listened to these experts lost a great deal of money. What is the conclusion?
The conclusion is never trust the experts, as I remember Boston College’s Peter Kreeft saying once in an interview is the one piece of advice he would give to people were he asked, and this goes not only for finances but in all areas of life. Can anyone forget that Ben Bernanke told us relatively early in 2007 that (as one article summarized it) “the subprime mortgage market’s troubles will be contained“? That is a monumental misjudgement worth remembering, and while you do please read the rest of this piece.
My daddy told me that, if I would remember three things, I would “do O.K. in life:
“There is no free lunch.
“What goes around, comes around.”
“Nothing goes up forever.”
Daddy was a smart man. God rest him.
There’s just one exception: do trust all the experts President Obama will consult. They will all be good and wise. Do not ask hard questions when they ask to spend a few trillion dollars of your money. They will be doing it for your good.
#2, Do I dictate a bit of sarcasm here??