Nowadays, all we hear in the financial media is how Goldman Sachs managed to make tons of money by selling a product which was guaranteed to make a profit for itself. The question remains: Should we, as society, allow such institutions to carry on this kind of behavior?
There are many reasons given in favor of putting GS executives in jail. And not just minimum security ones. When we buy a product (say, a house), there is an expectation that it will do what it is supposed to do. The seller of the house has to disclose all material and pertinent facts concerning the "livability" (assuming there is such a word) of that house. In case of Goldman Sachs, the buyer of those toxic securities can claim that they were fooled, or misled by the features of those securities. In that case, there is a clear case of misrepresentation on part of Goldman. However, if the buyers claim ignorance of the mechanics of that product, then they are to be blamed for not doing the necessary homework.
Should we always go to our government for help when we find evidence of unfair play?
We do need government oversight to protect the innocent, but we certainly don't need government to tell us when to buy a sweater, or under what circumstances to cross a road. We have been taught that very early on, by our parents and teachers. It is time to take responsibility for our own actions, for our own ignorance, and for our own refusal to understand something that is complicated. There will always be scam artists, conmen, and people like Madoff. The question remains: Are we allowed to be greedy, stupid and victims of blatant financial fraud? Or should we take responsiblity and admit to ourselves that education of financial issues is the best long term solution to our ever-present, continuing and on going problems?
What do you think?
Prakash L Dheeriya, PhD is the author of 20 children's books on finance in the series "Finance for Kidz". You can read about these books at www.finance4kidz.com
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