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"Tell me why I'm so lucky!" This was the challenge hurled by the head of
Capital Markets of my former Wall Street firm at any trader who booked a profit. My
partner, who ran our trading business, had the Head of Accounting sitting outside
his office and he tracked the firm's securities operations like a hawk. Since perfect
markets have the profits squeezed out of them, a reported profit demanded an explanation.
Why were we so lucky?
My former partner lived the first rule of avoiding financial scams: understand
where your money is, what it is doing, and the logic of your profits. If you don't
understand, if it does not make sense to you, if it does not reflect how the real
world really works, then it is prudent to assume you are dealing with fraud.
 There
are a few basic rules that will help you protect yourself from most financial frauds.
Consistent returns were the dead giveaway that something was fishy at Madoff's operations.
Consistent returns, however, are a siren's song for investors who want to prosper
inside a financial bubble.
Madoff raised funds through intimate networks. Critics say this is why you would
not bank and invest with people you know. Rubbish. You need to know who you bank and
invest with. You also need to know what they are doing with the money. Black boxes
are usually frauds -- whether by individual investment firms or by the partnership
of the Treasury and central bank.
In this week's Solari
Report (Thursday, January 8 at 9PM EST), we'll review some simple
rules to help you avoid financial frauds and embrace the "rock-and-roll"
of investment in the real world. I'll also look at a number of hi-visibility reports
that the U.S. dollar is about to tumble. Why are "insiders" suddenly going
public on this subject? Let's explore why.
Then I will be joined by nutritionist
Dr. Laura Thompson, a healer who has brought many people back to health
from seemingly impossible odds. I know — I am one of them. One of the great
blessings of seeking out people who are researching "what is really going on"
is that they are applying real solutions to real problems. When it comes to health,
this is absolutely critical.
In addition, I will be talking about the movie Syriana, one of the most
realistic dramas I have seen on the geopolitics of oil. Ever heard someone say, "Why
isn't anyone doing anything about this?" Syriana helps us answer this question.
It also sheds light on the logic behind Obama's appointment of a former U.S. Budget
Director to head the CIA.
You can learn more about The
Solari Report and subscribe here.
I hope you'll join us.
-- Catherine Austin Fitts
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