Friday’s close: Blythe on blogs, your letters and must-read news

Friday’s close is a new initiative to bring you something a little different — Scot Blythe presents his new, weekly round-up of the buzz on financial blogs called Tracking error, we bring you letters to the editor (send yours to editor@advisor.ca), must-read articles, quotes of the week and occasionally a funny or useful story to help you beat the recession burnout blues.

Skip to: Must read Letters to the editor Quote of the week

Tracking error: Blythe’s best on blogs Sometimes it takes a crisis to capture just how much things have changed. A few years ago, most blogs were highly personal, often very political, takes on the world. Many were written by well-known journalists; many more were written by anonymous axe-grinders. But as the financial crisis has accelerated, so has the proliferation of financial blogs — and their readers. Read more.

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Must read this week:

• • Ontario offers tax cuts, sales tax harmonization
  • Sprott bets the farm
  • Quebec budget to boost small-cap investment
  • Tax harmonization not just “Ontario’s problem”

• Harold Geller: Avoiding liability in uncertain times (Part 1: Second opinion seekers)

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Letter to the editor Re: Curing the KYC, by John Kelleway, published on March 13, 2009

I interpreted your article to mean we require a more detailed (or at least more relevant) know-your-client (KYC) form. I really take exception to this. Yes, this current market has taken everyone by surprise, but regardless of the KYC, people would still attack anyone they could and try to blame someone else for the drop in their portfolios.

I have been in the financial industry for over 43 years and the reality is this: there were, and probably still are, many greedy people who get compensated significantly for processing vast quantities of money, whether or not the client makes money. This is further exacerbated by making money too easily available, not just from low interest rates, but by everyone purchasing too much on credit.

If people are going to invest, then they must be informed that there is risk. Nothing is guaranteed.

Let’s not try to solve what has recently happened by putting in more things to be completed in the KYC. A changed form is not going to be much help. True, many are complaining about their loss of capital. But if inflation was rampant they would also be complaining about their loss of purchasing power. People will complain when they perceive a loss, income or capital, and will try to blame it on someone.

I strongly believe we should enforce the regulations we already have, deal harshly with those who are out to screw their clients and the “other guy,” and stop trying to add more regulations and more stringent KYCs, which just make more work and hoops for the honest people to jump through while the dishonest continue to do their dirty deeds.

Larry Terrace, CFP, CLU, Ch.F.C. branch manager Investia Financial Services

Do you agree or disagree with Larry? E-mail your thoughts to editor@advisor.ca or start a forum discussion with your peers here.

Quote of the week: We all want two things in life: one is to be rich, and the other is to not be poor. [For most people,] not being poor is more important than being rich. If people didn’t realize that before, they certainly understand this now. — Meir Statman.

From Building a better risk profile, by Mark Noble.

(03/27/09)