I was reading “When Karma Calls” over at PIonline and the found the attitude that some on Wall Street still have towards Eliot Spitzer a little hard to digest.
Instead of holding themselves responsible for their own misdeeds, many on Wall Street still blame Eliot Spitzer for their own, or their associates, demise. What does that tell you about the folks you trust to manage your investments? It’s just that kind of attitude that makes me so cynical about the investment world. So, I thought it appropriate to write a post defending Eliot Spitzer’s legacy.
The way I see it, Eliot Spitzer’s made mistakes, but he’s not a bad man:
- He didn’t steal money out of my pocket like the some of corporations and criminals he prosecuted when he was Attorney General of New York.
- As far as I know, he also didn’t embezzle any money from his constituency like many other politicians in his position.
- And although he might have attempted some unsafe sex practices, I’d be willing to bet that his “dates” weren’t the victims of any price-fixing schemes on his part.
Now, nobody likes a hypocrite, especially one who seems holier-then-thou. But, ask yourself this: Did his dalliances with prostitutes have any affect on you personally?
No, the only people that he really hurt were himself and his family. Nothing that he did wrong was at the expense of the average American, or done so in order to fraudulently lines his own pockets. Unfortunately, like many other powerful men, he just couldn’t manage to keep his pants zipped.
Of course there’s no arguing that what Eliot Spitzer did was wrong, but I’m not one to forget his good deeds, no matter how his motives might be perceived by others.
Let us not forget the great changes he helped institute on behalf of the American consumer and individual investor like myself. I believe that his many positive accomplishments far outweigh the few mistakes he’s made.
Instead of criticizing him, I believe we owe a debt of gratitude to Mr. Spitzer.
Here are just of few of his accomplishments:
- The five largest music companies and three of the USA’s largest music retailers agreed to pay $67.4 million and distribute $75.7 million in CDs to public and non-profit groups to settle a lawsuit led by New York and Florida over alleged price-fixing in the late 1990s.
- As part of a Global Settlement decision in 2002, several regulations designed to prevent abuse stemming from pressure by investment bankers on analysts to provide “favorable” appraisals were instantiated. The investment firms involved in the settlement had all engaged in actions and practices that had allowed the inappropriate influence of their research analysts by their investment bankers seeking lucrative fees.
- My favorite: In the 2003 Mutual Fund Scandal, Spitzer discovered illegal trading practices on the part of certain hedge fund and mutual fund companies. Spitzer and later the SEC also charged that major mutual fund groups facilitated market timing trading for favored clients. Nearly all of the fund firms charged by Spitzer with allowing market timing or late trading had settled with his office and the SEC between mid-2004 and mid-2005.
So, remember to keep these good deeds in mind whenever you feel a little vindictive or read that Eliot Spitzer is “getting what he deserves”. He did a lot of good things on our behalf during his career.
Source: 
Second Quarter Start
If you’re a Bull, then I’m sure you’ve been delighted with the performance of the stock market this past week, and the beginning of the second quarter.
I won’t repost results that you can find elsewhere, but suffice it to say, the market really made a comeback in spite of worsening economic data. Here’s a list of some good places to follow weekly market results:
There’s an old adage that says the market usually turns around before the economy. A lot of folks are now saying that all the bad news has already been factored in, and that the market has bottomed-out. Well, I’m a little skeptical. I still think that the market’s in for more bad news and lower price levels. Corporate profits are going to be hit hard soon, and profits are what drives stock prices. Let’s see if the PPT can manipulate that.
But, don’t just take my word for it. Listen in to what Standard & Poor’s Equity Research has forecast for the remainder of the year and decide for yourself:
Earnings Outlook: Rebound or Repeat? (mp3 audio)
So, I’m still waiting on the sidelines, 100% of my retirement holdings invested in cash. Only time will tell if I’ll be left behind, or if my continued patience eventually pays off.