Quote:
Originally Posted by BigInJapan
I've lurked for many years now on this website...never have I felt more compelled to join so as to contribute/add my opinion as I have by your input. (believe me, I've almost joined many times to applaud or argue the points being made...fyi I've learned much from the wealth of knowledge here).
I have a formal education in corporate finance. I own a successful company; I've started several companies.
I'm compelled to respond to this because, even though finance/business is my profession, I deplore the financial industry. The problem is fundamental: the financial industry exists for one reason - to sell financial products. period. Many/most of those 'products' are castles in the sand and are based on no tangible good. The hubris the financial industry exhibits is deplorable. My company builds products, it has value - real value - because it builds products that contribute in some way to society. I have a professional critique every time I experience someone in the financial industry justifying to me how I 'need' to consider their administered financial plan. The numbers don't work for the unknowing, but the problem is furthered by those who are amenable.
How did the financial crisis of late start? What were the underlying factors? Miseducation? Ignorance? A sophisticated system (sub-prime) looking at short term gains? Poppycock.
Weekend class...there's truth in that comment (FYI: lukeh...I'm directing nothing at you personally...the 'financial industry' is where my rant is directed).
Ian
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No, there is not any truth in that comment. If so please tell explain how in one weekend you can take the classes and pass the necessary tests to become a licensed financial advisor.
Of course you sell financial products in the financial industry. Unless you want to keep your money in a can buried in the back yard you need to invest it into a product ranging from a savings account to corn futures. I don't understand how that is a bad thing? Blaming the financial industry for offering financial products is like blaming the farmer for being in the business of selling food? He isn't growing to be a nice guy. He is growing it sell sell it for as much as he can and make money. And if you don't like farmers that milk cows then don't drink milk just as if you don't like guys that sell mutual funds then invest in something else.
No, most of the products are not just castles in the sand. Those castles helped people retire and pay for kids college. Are some bad ideas that lose money, sure. Every industry has crooks as well as mistakes and bad ideas.
My guess is you make a product and sell it and you do it to make money. My guess is we could all get along just fine without your product. Try getting along without any financial products. You are the one with Hubris if you think your products have value and contribute to society while the financial industry doesn't. My guess is you use the financial industry every day and your company couldn’t operate without it. You feel we need your products more than we need a savings account, checking account, loans, 401ks.... Now that is hubris.
The financial industry isn't just some big wall street bank that had some crooks making bad decisions. That is just what you see on the news because it gets ratings. Most of the financial industry is guys working at the local bank. And we aren't all crooks trying to take advantage of people. To say such a thing is to call all doctors crooked because a minority preform unnecessary surgery or over prescribe medications. You are unfairly stereotyping an entire industry over the actions of the minority. You must feel taken advantage of or feel wronged to come to such a conclusion.
If you attack my profession you are attacking me. I don't take it personal because you don't know me but you are saying I'm guilty by association and I do find that insulting. It would be like you being a business owner and me saying all business owners are greedy, don't pay enough in taxes and are living off the backs of the middle class.