Who Can You Trust?

One of the most frustrating and worrisome aspects of investing is the fact that, on occasion, investors are victimized and lose their money to crooks and swindlers.

And those crooks and swindlers are not always small-time operations.

Take MF Global for example. MF Global was one of the fastest rising trading firms in the financial world, headed by the former governor of New Jersey, Jon Corzine.

Thousands of clients lost billions of dollars when MF Global used their money in unauthorized transactions that subsequently went bad. In most circles, that’s called “stealing.” When someone gets caught stealing, they are supposed to go to jail.

But that’s not going to happen in the case of MF Global. The firm stole from its clients then collapsed and now no longer exists. The ace investigators at the US government have just concluded their work and lo and behold, NO ONE will be charged with a crime in this disgraceful affair.

This is what is known as adding insult to injury.

Investors need to be careful about putting to much trust in Wall Street. And they need to be careful about putting too much faith in government regulators to protect their hard-earned wealth.

All too often, promises from Wall Street and Washington are hollow.

Investors need to put their faith in an asset that is not dependent upon anyone’s promises: GOLD. Gold isn’t anyone’s liability and it doesn’t depend on anyone’s backing or guarantees. That’s why it should form the financial shield for the properly diversified investment portfolio.

http://news.yahoo.com/no-one-charged-crime-mf-global-collapse-111056124–finance.html?_esi=1

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