National Confidence Game

On frothy stock prices, late 1990s lesson:

“Paper wealth based on inflated prices, with no corresponding growth in company profits, was an illusion. The massive inflows into mutual funds could not last and without them the extraordinary prices were not sustainable. The stream that fed the national confidence game was about to dry up. Adolf Berle might have been alarmed by this prognosis, but the men and women who ran the regulatory system he had championed took no discernable action…..”  From Ponzi Regulation 


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