The CNBC/Lewis debate: When a Wall Streeter says, ‘You don’t understand,’ be very scared

CNBC.com
CNBC.com

“You don’t understand” said everyone who ever tried to take advantage of someone and take their money.  Wall Street is a game designed to make traders rich by skimming money off the top of America worker’s tiny savings, inventing more and more complicated ways to do that. When someone finally figures out that some new financial innovation product is insanely risky and the system is rigged, all the people making money cry, “You just don’t understand.” When mortgage-backed securities traders said they’d eliminated risk by splitting mortgages into a thousand tiny pieces and reselling them a dozen times, they said we didn’t understand.

All you have to do is listen to the way Bill O’Brien talks during this segment, even if you don’t understand high frequency trading, and you’ll probably feel the way you did the last time you tried to buy a used car.

Wall Street is a wonderful idea designed to help big risk takers raise capital and let moms and pops around the country participate just a little bit in the American dream of being a true capitalist.  What it’s become is an abomination.

Please watch.  And then make sure you aren’t throwing away 1 or 2 percent of your retirement money every year in stupid mutual funds. Put it all in an index fund, please.

About Bob Sullivan 1318 Articles
BOB SULLIVAN is a veteran journalist and the author of four books, including the 2008 New York Times Best-Seller, Gotcha Capitalism, and the 2010 New York Times Best Seller, Stop Getting Ripped Off! His latest, The Plateau Effect, was published in 2013, and as a paperback, called Getting Unstuck in 2014. He has won the Society of Professional Journalists prestigious Public Service award, a Peabody award, and The Consumer Federation of America Betty Furness award, and been given Consumer Action’s Consumer Excellence Award.

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