Will You Feel Sorry for GM Bondholders?
Last year I wrote about feeling sorry for a GM retiree who might have to go back to work in his 50’s.
Boo hoo. Mr. ToughMoneyLove was not sympathetic.
Alas, it’s getting worse.
Here is one example of a gambling fool of finance who bet his retirement on GM bonds – $700,000 worth. What kind of crazy person does this? Your entire retirement savings in the bonds of a single company? A company in a fiercely competitive world market?
Do I feel sorry for Jim Modica, age 68? Yes, but not because he is about to lose his bet on GM. I am sorry that his brain apparently stopped working correctly when he retired at age 65 or whenever.
Even with his cognitive skills diminished, Mr. Modica remained persuasive. So much so that he convinced some of his family members to join in the no-brain train toward GM bonds:
We did this as a family. We had discussions about safe investments. We thought, who is the No. 1 carmaker in the world? GM. These bonds seemed like a sure bet.
Maybe Mr. Modica was thinking a little when he reached this conclusion initially. But wasn’t he watching the news about GM as its market share steadily declined over recent years? Did he not re-evaluate his risk as it increased and the market value of his bonds declined? Apparently not.
That’s what the people think government is now for, to protect the stupid people from their own stupidity, using money extracted from the less stupid people who still pay taxes.
If I see President Obama hugging this guy at a townhall meeting, I may have to throw a shoe at the television.
Image credit: Raleigh.mike