RIP-OFF ALERT: There's a controversy brewing over supposedly ultra-safe cash investments that were sold by some of the biggest banks and brokerage houses in the country.

These so-called "auction rate securities" (aka "cash holdings") were touted as the equivalent of a money-market account. Banks and brokerage houses including Merrill Lynch, Citibank, UBS, Morgan Stanley, J.P. Morgan Chase and Wachovia sold $300 billion of these to non-profits, local governments and individuals.

These auction-rate securities were pushed as a substitute to savings or money-market accounts -- even though it was known they were garbage. When the music finally stopped, people had their life savings wiped out and non-profits went insolvent.

This raises 2 points in Clark's mind: First, where is the moral compass of the banking and brokerage business? Why would they go out of their way to rip off customers and destroy them financially? The answer is simple -- the commissions were humongous.

Second, where is the federal government? The SEC, the Federal Reserve and the OCC haven't done anything. The only actions are coming from the attorneys general of New York and Massachusetts.

There are just 2 lone wolves going after the bad guys! The banks and brokerages have been fined in the millions, but that's just a slap on the wrist for them. The attorneys general are trying to force full restitution to those who were ripped off. Clark applauds that effort and thinks jail time is in order for the culprits.

Always remember the core principle of investing: Know what you are buying. If you can't explain it to a fifth grader, don't buy it. That should help you stay out of harm.