Got your Blinders on?

"pie-in-the-sky" promises from high-pressure salesman should set off an immediate alarm

One evening nearly 20 years ago I got a call from a stock broker at Blinder, Robinson & Co. who had a hot tip on a penny stock. Needless to say, I didn't bite. A few weeks later the firm appeared -- unflatteringly, of course -- on CBS' 60 Minutes.

The International Herald Tribune reported in 1992:

Who falls victim to these kinds of frauds? Almost anyone. Joseph G. Mari, assistant director of the SEC's International Affairs Office, said "even sophisticated investors can be victimized by schemes like this."

The thing about scams is people -- even smart people -- are loathe to admit they've been taken, believing themselves too smart to be fooled. And to avoid admitting it to themselves they'll sink even more money into a bad investment in the sad hope that a miracle will occur to redeem their initial bad decision. Anything to admit they'd been duped.

Which brings us to the remaining Bush administration faithful, the unflagging whatever percent who know -- yes, they know -- they've been had, but cannot bring themselves to admit it.

And why would they? Their champion and role model would not. He is pouring more good money and good lives into Iraq, hoping a miracle will redeem his initial appallingly bad decision, and the one after that, and the one after that, and ....