And another line of ‘mom & pop’ investors is wheeled out by the press with ‘heart rending’ stories of how they lost all they savings.
This morning some guy had put (apparently all his savings) $270,000 into Hanover. WTF! he put that much into a junk bond rated investment and it was all his savings???
Hanover wouldn’t have existed if it weren’t for financial illiterates. Didn’t these people get any independent advice before shelling out so much money? If they were so dead set on such a high risk investment then why didn’t they spread their risk?
It’s impossible for me to feel any sympathy for these investors as it was clear that they were driven by greed, why else would they have ignored all the warnings about the property market tanking and not checked out exactly why they were being offered such a high return?
If they are looking for sympathy from people they are naive – which may just be the problem – but I’m still going for greed. I’d almost think that the implication is that ‘somebody’ else should be helping these people out and protecting them from their stupidity, but maybe not, because that would be cheeky.
If you’re investing your money don’t put all your eggs in one basket – jeeze how difficult is that?
Those who don’t learn from history are forced to repeat it.