| 'Children never learn', that's what our parents always say, but what I see these days from the newspaper is investors NEVER learn from mistakes. Lehman Brother's bankcrupcy, AIG tragedy, breakdown of the 2 largest investment banks led to a chain reaction in the security and stock market. Lately, there were people whining that they where cheated or misled to buy the bonds issued by Lehman Brothers. I am not saying that they are lying, I truely believe there are some kind of misleading, such as insisting that the bonds are risk free, occuring when the staffs are selling the bonds to their clients because some staffs once sold those kind of bonds to me. The crucial element here is not blaming anyone, but to ask a question, why don't people read the contract thoroughly before they splash millions of cash into those kind of investments? How can a yield of 5 percent per annum be totally risk free? Another problem, they are claiming that the issuer's name is written in a very small font size at the bottom of the contract, but think about it, even if I told you in person that the bonds are issued by Lehman, I really doubt the possibility that you would withdraw from the investment. They don't even have a clue that the 4th largest investment bank in Wall Street is in a financial crisis. So, why blame others? The man to blame is themselves. Investing without intensive research is always the lethal weapon killing investors, or I should say spectulators, over the history. Losing millions over the night is of course not a pleasant experience, but through this tragedy, I hope all the participators could learn the lesson, the painful, costly lesson. |
