... What was Merrill's board asking Mr. O'Neal when Merrill was earning record profits on the outsize success of its huge investment in subprime mortgages and related collateralized debt and loan obligations?
I know it's hard to ask tough questions in the face of success. It's not a strategy for winning popularity contests. But it's essential in the worlds of business and investing.
Exactly. Nearly every great business blow-up in history might have been prevented -- or at least had its impact limited -- if people had asked probing questions when everything was going well. Remember when analysts lamented that Enron's earnings were a black box? Jeff Skilling even agreed with that assessment! But hey! It was fine because the stock was going up! It wasn't until after the company imploded that people decided to question the wisdom of investing in a company when you have literally no idea how it makes money.
Read Stewart's column, and forward it to everyone you know who invests. There's probably some deeper metaphor in it about life, but I shan't bore you.
Nuclear power is on the comeback trail
Apple backs AT&T in continuing spat with Verizon
Closing Bell: The recession is still over, still... do you feel it?
