May 8th will see a no-doubt downbeat report by Frontline on the brokerage industry, Worldcom, and Wall Street’s latest escapades. I’m not sure what more there is left to say on this subject, and snippets in Frontline’s press prelease promoting the program don’t give me oodles of hope.
Case in point, the following snippet:
“Is Wall Street fixed? Ha! Not by a long shot,” investor George Mickelis says. Mickelis, the owner of a family restaurant in Houston, lost $300,000 that he invested in telecom stocks for his children’s college education. “I have no faith and no confidence–not in the companies, not in the brokerage firms…. What have they done to restore my faith and confidence as an individual investor? Zero. Zip.”
While that may sound sad and piquant to some, it is entirely indefensible and unsympathetic. This fellow put a meaningful component of money into telecommunications’ stocks in saving for his childrens’ education? And then he expects sympathy?
That is an outrageous and entirely silly claim. Anyone who puts money into a) equities, and b) more specifically, technology equities saving for a known, near-term deadline needs psychiatric help, not legal redress for lost principal.