Whether a reference to George Orwell’s authoritarian character from Nineteen Eighty-Four, or a more affectionate reference to an older, more experienced sibling who is looking out for your interests, some form of the Big Brother spirit is at work in the current financial reform laws. In a passionate attempt to protect the individual investor from the Wall Street malfeasance that fueled The Great Recession, these laws subject financial companies to federal oversight and regulate derivative contracts while creating a consumer protection agency to monitor the system. This is an attempt to protect both our country and individual Americans and represents the most sweeping financial legislation since the Great Depression.
The impact of these laws, however, remains unclear. Some argue that they don’t go far enough, while others see them impinging on corporate growth and hampering our weak recovery. Still others believe that these laws are so convoluted that it will take years for practical benefit to trickle down to individual investors.
At MarketRiders, we believe there is a bigger question – not simply a question of whether Big Brother will protect me, but more specifically, will I protect myself? Am I willing to perform the keen analysis and critical thinking required to protect my retirement dollars from malevolent forces that seek to get rich at my expense? Let’s face it – you were smart enough to make the money. You are probably smart enough to protect it as well. By removing unnecessary intermediaries, reducing fees, diversifying, and investing in assets you understand, you can enact your own highly effective financial reform without the aid of Congress.
