Jack Bogle Warns Of Market "Chaos, Catastrophe" If Passive Investing Wins

[Faust For ScienceParticipant 22521]

Jack Bogle Warns Of Market “Chaos, Catastrophe” If Passive Investing Wins

http://www.zerohedge.com/news/2017-05-07/jack-bogle-warns-markets-will-fail-if-everyone-indexed

If I have read this article correctly, Mister Bogle is worried that no one is taking risks with their investments. That people are only investing in the most secure investments they can find and by doing so this will wreck the stock market.

Well this is an indirect admission that the stock market makes money by people foolishly losing money on bad investments.

Also, those on Wall Street and in the banks have only themselves to blame. They have turned to stock markets into a crooked casino that is propped up by bail out money which is printed out of nothing and decreases the value of the money held by everyone else.

Wall Street and the banks have socialized their losses while privatizing their profits.

The common people are the ones being screwed over.

This bail out mess has been going on since 2007. But, this mess really started with the repeal of the Glass-Steagall act in 1999. The Glass-Steagall act forced the banks to be financially responsible, and the act restricted banks from using the bank holdings to directly invest into commercial ventures, including the stock market.

Well after years and years of this mess, people are no longer playing the game and people on Wall Street are getting worried because no one is playing their crooked games and their whole system is about to come down like a house of cards.

[TuneoutParticipant]

Everybody doesn’t though – just the smart people,lol

There will always be fools who think they can beat the market or simply let a mutual fund manager try it for them while paying high MER’s.

Greed and fear is what drives the markets – this will never change.

Both are good – as long as you know how to use them to your advantage.

Lifes a bitch,but you don't have to marry one!

[Y_Participant 4591]

Stock markets are out of control. There are only bad risks and worse risks.

There is no more even a quasi- price discovery mechanism in place since the Fed decided to go with QE and reduce interest rates to almost zero. The yield curves and PE ratios are all fixed.

I am waiting to see what rubbish they will come up with next.

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