Paul Krugman is surely right about this:
I think of the pursuit of a world in which everyone is small enough to fail as the pursuit of a golden age that never was. Regulate and supervise, then rescue if necessary.
How long can this debate over reverse converts go on? I’m not sure, but I’m willing to put up one more blog entry on the subject, since Vincent Fernando is both misrepresenting my views and giving me the opportunity to make an important broader point.
John Bogle’s mutual fund vs ETF analysis has now appeared, and it seems I was right: Bogle makes no attempt whatsoever to distinguish between buy-and-hold ETF investors, on the one hand, and ETF noise traders, on the other. (Or, to put it another way, he makes no attempt to restrict the ETF investors he’s looking at to those who would otherwise buy mutual funds.)
Dean Starkman has a 4,148-word love letter to Gretchen Morgenson in The Nation; it’s far from clear that his feelings are reciprocated, despite the fact that he calls her “the most important financial journalist of her generation”, and dismisses her critics as trying to start “arguments about wallpaper design in a burning house”.