Friday, February 7, 2014

Never, Ever, Ever Take Financial Advice From A Government Official

By, Chris Rossini

Remember 10 years ago, when The Maestro told Americans not to be such boring squares? Greenspan advised Americans to dump those fixed rate mortgages, and jump onto the wild side! Spread your wings and fly with an adjustable rate mortgage:
"American consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage."
Greenspan even pulled the 'all the cool kids are doing it' routine:
"American homeowners clearly like the certainty of fixed mortgage payments. This preference is in striking contrast to the situation in some other countries, where adjustable-rate mortgages are far more common and where efforts to introduce American-type fixed-rate mortgages generally have not been successful. Fixed-rate mortgages seem unduly expensive to households in other countries."
How did that work out?

Rule of thumb: Never, ever, ever take financial advice from a government official. Actually, just to be safe, don't take any advice whatsoever.

Now heads up....because here comes Michelle Obama with some advice of her own:

The New York Times provides the quotes that we'll revisit 10 years from now:
“Fill out those forms, fill them out!” Mrs. Obama exhorted. “Don’t leave money on the table.”

“For those of you who might be wondering why the first lady is here just to watch you fill out a computer form, it’s because completing this form is a critical start to completing your education,” Mrs. Obama said to a few dozen high school seniors and parents.

“Unfortunately, too many students don’t even bother to apply to college because they don’t think they’ll ever be able to afford it,” she added. “So they just walk away from the opportunity without getting any advice or seeking any support.”
Remember the rule: Never, ever, ever!

Even if a politician advises going to a particular pizza shop. Do yourself (and your digestive system) a favor: Never go to that pizza shop.

Chris Rossini is on TwitterFacebook & Google+


  1. There was one time to listen to the politicians:

    Obama called the market bottom in March 2009. Unless you believe Obama is the world's greatest investor, perhaps the most compelling evidence that the Fed manipulates markets.

    1. Also, when interest rates were at double digit levels, Paul Volcker said Treasury bonds were a great buy. It was a perfect call. Anyone following his advice would have locked in rates of around 15%!

  2. Looking at Greenspan's Long-Lost Thesis

    Barron's gets a rare glimpse at the Maestro's long-lost NYU doctoral thesis, and his long-ago view of, yes, a housing debacle.

    Greenspan purportedly was trying to deter news coverage of his personal life when he ordered the thesis into hiding. His anti-paparazzi subterfuge backfired: The stealth thesis became red meat for his critics, who smelled a cover-up. Magazine articles and a new book, Deception and Abuse at the Fed (reviewed here on March 31), have suggested that his degree was largely honorary and that the thesis was a cut-and-paste job, comprised of previously published, non-academic articles wrapped in a flimsy introduction.

    Beware of False Prophets ??

  3. I feel you're being unfair to pizza shops here. Just because they have the 'privilege' of being recommended by a politician, doesn't mean they asked for it. Although if I found out that a local politician was often frequenting the shop, I'd be wary to go and have to listen to their profound wisdom they are always spouting.

  4. Technically, she's not even a politician but the wife of a politician. Regardless, if a POS like Michelle Obama told me the sun came up during the day, I'd check out the window nonetheless.

  5. Should read:

    "Never, Ever, Ever Take ANYTHING From A Government Official"

  6. It is great if you go to the financial adviser which are dealing with these things and are really great to provide you the best advice that will be fruitful for your investments. If you are directly getting advise from a government officials sometimes it is good and sometimes useless. the best thing is your adviser should know the ups and down of the market where they are investing. However your post is realistic and delivering the best idea that so many people do not think about.
    financial planning Irvine

  7. Never get an advice from a Government Official is such a valuable idea because sometimes it works and sometimes not government officials always concern with their own benefits and if you are dealing with the financial adviser firm you need to focus on your markets. If you will do this you will get the best idea where to invest and where to stop. Here is another post for the more information you can also read this that will provide you a better idea for investments.