Corruption in the U.S. Stock Market: A Response from Australia

Corruption in the U.S. Stock Market: A Response from Australia

by Stavros Stavrides

[An academic from Australia responded to the HCS article, "Caveat Emptor: World Stock Markets May Be Rising Again On the Back of "Irrational Exuberance,"' written by Christos Papoutsy. His thoughts appear below.]

I read your wonderful article and agree with you in all respects. Since the late 1980's, successive Australian governments have encouraged workers to put their surplus money into superannuation investment accounts. Superannuation is our retirement pension income. On top of this, all employers are legally required to contribute around 9% p.a towards their employees superannuation. Prior to July 1, 2005 your employer invested your super contributions into a variety of investments and shares, etc. on your behalf.

See also:

Corruption in the U.S. Stock Market:
A Response from Europe

Now we have what is called superchoice. As an employee you have to choose where you wish to invest your superannuation. All I can say is that superannuation is a really complicated thing; even those in the finance industry have problems in understanding its inner workings.

With superchoice, we see a whole new lot of financial businesses springing up to meet the "new market challenges" created by the Australian federal government. Many people like me don't understand or have very little knowledge of how the stock market and financial investment systems work. All I can say is that some people who will invest their superannuation with these new financial companies may in the end lose everything. There are a lot of sharks out there who pose as honest and ethical business people.

I hope this information adds something further to your wonderful article and trust that my explanation is easy to understand. Caveat emptor is 100% correct

(Originally posted in August 2005 under title "A Reader's Response to 'Caveat Emptor: World Stock Markets May Be Rising Again On the Back of 'Irrational Exuberance'" ; reformatted on February 9, 2009.)

For more information about Mr. Christos Papoutsy, his schedule of free lectures, or to read his other articles on corporate social responsibility and business ethics, visit the About Us, Business, or Business Ethics sections of the Hellenic Communications Service (HCS) website, or the webpages of the Christos and Mary Papoutsy Distinguished Chair in Ethics at Southern New Hampshire University at the URL http://www.snhu.edu/papoutsy.html. HCS readers who enjoy this article may wish to read "Corporate Social Responsibility: Is Moral Capitalism Possible?" and "Business Institutionalization Promotes Excellence, Combats Corruption." Mr. Papoutsy welcomes comments and can be reached via email at the address papcoholding@papcoholdings.org.