Jack Vogel - 40 years ago 92% of stocks owned by investors, 8% by others. Individuals now down to 30%, mutual funds, pension funds, and other institutions own the rest. We have an agency problem. Individuals are now served by agents that server their own interests which drives short term speculation.
Buying Cisco at 5 different price points is not diversification.
- Todd Hoff
Innovation should be differentiated from gambling. Hedge fund managers are just gamblers and shouldn't be rewarded. We should favor entrepreneurship and innovation.
- Todd Hoff
The documentary "Inside Job" does a decent job explaining this phenomenon. The part I find fascinating in all of these gross global economic misconducts is that everyone knows they are going on and nothing changes, even after global economic meltdown. Its like the horror movie voluptuous blond going downstairs to examine the noise, not much point telling her not to go, best to just sit back and enjoy the gore :)
- Jak Sprats
A very depressing movie. An appropriate variant of Upton Sinclair's "It is difficult to get a man to understand something, when his salary depends upon his not understanding it!" might be "It is difficult for a system to fix something, when massive speculative wealth depends upon it existing."
- Todd Hoff