Vanguard pioneer John Bogle, who said last month that the U.S. government appears "punch drunk" on its proposals to rescue the financial system, told NPR last weekend that the current crisis is a "speculative orgy like nothing we have ever seen before in the history of the United States."
"Turnover in the stock market is...more than twice as high now as it was in 1929. We've become a market dominated by speculators and not by investors," said Bogle. "And Wall Street plays a big role in this, simply because they like to get out 'new products,' and they don't pay much attention to the quality of those products. They're trying to do all this complex innovation to make money for themselves...and they sell it to people who ought to know better who are just looking for more yield."
Listen to the entire interview here. And click here for a market take from Vanguard's new CEO, Bill McNabb.
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