Wilberne Persaud, Financial Gleaner Columnist

PERSAUD

ON DECEMBER 21 last year, I said that one objective of these columns is to "be informative for the general reader and propose ideas on subjects that lead to deeper thinking and stimulus to informed conversation."

I pointed out that another "more difficult objective has been to get readers to realise that supporting a policy is not on the one hand, to choose a politician or political party while to be critical of a policy is equal to denunciation of a politician or his party. This one is difficult in Jamaica since politicians - incredible, given their chosen profession - seem to be rather thin-skinned. One good thing though is that they are a lot better than their supporters who consistently cuss the messenger while missing, ignoring the message. I am acutely aware of this from some - happily, very few - reader comments."

Critic of the scam

On these issues, I feel it may be a good thing to share two reader comments illustrative of how discussion might emerge.

The first, anonymous, to which I would not normally respond, represents the latter problem.

"Aren't you a bit too late in commenting on the scam? Never learnt from the past? You and Mr. Davis (sic) have something to do with FINSAC affairs, maybe I am wrong.

"This is second time, Davis' incompetence going to cause the taxpayers a ton of money, if the government decided to help out. Davis, Ph.D.! Don't know a pyramid scheme, from a legitimate business, we have to assume that he doesn't know, not that he turn, a blind eye to the scam, which would be dereliction of duty ... Under Davis' watch and you as a bystander, right before your eyes, the scam schemes sprang up. The scam, promising 10 per cent per month, it should ring a bell, you didn't put in your two cent worth then, now after the damage has been done, all of a sudden, you became a critic of the scam.

'Honestly, they should close down University of the West Indies (UWI) or put a limit on the number of staff from the Caribbean, too much deadwood at that institution, they do not advance the thinking process, and they are just followers. Most of them sit there with their paper qualification on the wall, which is just a glorify piece of paper, it means nothing, if you are not good at what you do. In the past what happen in the financial sector, all the player, who was apart of the fiasco, should be alert and sensitive to what goes on in the sector, how many time we have to learn our lesson."

This is a mouthful. Here's my response.

Free up your mind

"You are obviously someone who cares about your country. You, however, shall do no good if you hide in the shadows and shoot barbs from a position of clouded understanding of facts, issues, timing and the difficulties of governance. That is speaking from a scientific viewpoint, from the perspective of seeking truth. From another perspective, you seem to be a Caribbean person with a self-hate completely imbibed from the powerful psychological forces of colonialism - I can only recommend to you Bob Marley: Redemption Song in hope that you free up your mind.

"I am heartened that you read my column which tries to raise questions for exercise of the mind and logic. Thanks for the comment nevertheless. And continue reading as much as possible."

The other comment represents a more reasoned approach to the problem.

"Having read a number of commentaries regarding th investment schemes, I am left wondering just how much time some individuals have taken to research the mechanics of forex trading. I will agree that not all clubs are equal, and some may agreeably be 'pyramid' type schemes, but others are based on sound science and time tested techniques producing consistent returns for the trader when applied.

"My simple advice first to investors is: 1) Know your trader(s); 2) Understand how your money is being invested; 3) Only invest what you can afford to lose; 4) Do not approach your investment simply based on the experience of others; 5) Safegaurd your principal; 6) Do not borrow to invest, start small if necessary. And to the 'observers': 1) Be balanced and objective in your criticism; 2) Take time to understand the mechanism of forex trading."

There is much here that is useful. But it does seem to assume that the major element of our new investment schemes is foreign exchange trading. And yes, there is money to be made in such activity. Yet, if it was as easy as so many figure it is, would we not have so many more millionaires?

Regardless of these views, however, it is the responsibility of a government in a capitalist, free enterprise market economy to provide oversight of activities that take money from the public for investment in operations that seek private profit. History, including the current international environment, is full of episodes that tell us this.

Finally, it is interesting to note the UWI study reported in this paper which suggests professionals and the middle class/middle income groups are most represented among the 'investors'. There are, indeed, so many lessons to be learnt. Perhaps, as usual, legislation lags behind events. Only time will tell.

wilbe65@yahoo.com