Don't be overly trusting and they won't steal your wealth

"If the so-called 'Greatest Generation' was so wonderful, how did they wind up raising so many terrible kids?"

I don't remember who the comedian was who coined that one -- it sounds like a Dennis Miller line -- but there was at least one lesson our parents tried to teach us that just didn't take.

Trust no one -- until they show you they can be trusted.

If one thing has been apparent over the last 10-20 years, it is that an ever-increasing number of Americans are becoming amazingly gullible.

People make the most outrageous statements, and as long as their words are compatible with someone's basic philosophy, their words are believed.

Why would they lie?

Or even worse ...

They couldn't say it on television (or radio or in print) if it wasn't true.

Of course, lying for political advantage is nothing new. People expect politicians to lie. Probably the strangest thing about Jimmy Carter in 1976 was when he told voters, "I'll never lie to you."

I remember what the late columnist Mike Royko said about that statement. He said it was such a unique thing for a politician to say that it meant one of two things. Either Carter was one of a kind or he was incredibly cynical and evil.

He was neither, but as time has passed, there seem to be far more people who will lie to us, especially when they can make money doing so. One of the best examples of that -- one of the most damaging -- came during the housing bubble a few years back. Especially in areas like California and Florida, it looked as if prices would be going up forever. People were encouraged to buy houses they couldn't afford with the idea of living in them for a few years and then selling for a profit.

When the bubble did burst, a lot of people found themselves with homes worth a lot less than they owed. That would have been bad enough, but what made it much worse was that unscrupulous lenders told low-information buyers that they couldn't qualify for the best loans even though they actually did. They told them the only way they could buy a home was by taking out a sub-prime (higher interest rate) mortgage.

Why would they lie?

Or even worse ...

Why would they want to hurt me?

Or worst of all ...

They don't even value you enough to hurt you. You're only a customer to them, someone to be fleeced for whatever they can get.

So much of what has been sold to us as progress is really only an effort to turn us into customers. When people had pensions from their employers, they didn't have to put a whole lot of thought into it. They were told their options and someone from the company usually gave them advice.

But when more and more companies switched away from pensions toward 401(k) accounts, people became cows to be milked for commissions. If you make money in the process, that's great, but if you lose money, they still have their commissions.

The fact is, they'll go to almost any lengths to make you a customer and make money off you. If you're fortunate enough to own your home in full, they will do their best to buy it back from you -- at a bargain for them, of course -- in the form of a reverse mortgage.

What you're actually doing is selling equity in your home without getting full value for it.

And of course, the lender is collecting fees for his effort. All you lose is wealth. You may get a trip to Europe, a big screen television or some other such luxury out of it, but money you spend isn't wealth you're creating. At least not for yourself.

That's one of the lessons our parents tried to teach us, but it's a lesson many of us never bothered to learn.

I have a friend whose parents only borrowed money once in their life -- for a mortgage on their house. They didn't refinance to spend their equity and they have owned their home -- free and clear -- for a long time.

They have wealth. My friend has none.

It's as basic a difference between two generations as could be.