Tuesday, July 19, 2005


Safe Haven | Gambling Craze, Real Estate Mania, Bernie Ebbers, and the "Last Gasp" Top
To paraphrase what a colleague recently told me, "The gambling craze is the last gasp manifestation of the average person's attempt at keeping up his current lifestyle by increasing returns when every other investment vehicle has proven insufficient."


This purgation of the system is nowhere more evident than the recent high-profile trial and conviction of former WorldCom CEO Bernie Ebbers. I recall from my early readings of Wall Street history that whenever corporate scandals and systemic corruption is brought out in the headlines in the form of show trials, etc., it usually coincides with a top. Will this time prove to be any different?