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

Tags: Adolf Berle, mutual funds, Stock Market, stocks

This entry was posted on February 18, 2015 at 3:33 pm and is filed under Equity, Fraud investigation, Government, History, Regulation. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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