My heart goes out to those who lost thousands and millions in savings in the scam reported in the newspapers. No amount of money is worth killing oneself over, but I could understand the desperation felt by those who did take this route.
The painful fact is, even with due diligence, it is possible for people to lose all they have, by virtue of the prevalance of these financial scams. Internationally, there was the recent MF Global fiasco, where officials of a supposedly reputable brokerage company managed to steal billions of dollars from experienced clients, including large institutions.
Although, I contend that without the so-called safety net provided by government, less people would be duped. Even regulation, after all, is better in a competitive, as opposed to a monopolistic, environment.
I recently blogged about 10 social problems, and their solutions. May I add another one:
If you want greater financial security for people, abolish the SEC.