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Boogle : American Capitalism Is Doomed

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Bogle: American Capitalism Is Doomed

By Lisa Scherzer Published: October 13, 2005

Click here for more stories by Lisa Scherzer.

AT 76 YEARS OLD, John Bogle, the founder of mutual-fund firm Vanguard, describes himself as an idealist. But you wouldn't know it from the first few pages of "The Battle for the Soul of Capitalism," which might give readers the notion that he has transformed into a gloom-and-doom cynic. Throughout his new book, Bogle paints a dire picture of the financial system, starting with a frightening comparison between 21st-century America and the fall of the Roman Empire.

http://yalepress.yale.edu/yupbooks/book.asp?isbn=0300109903

"People understand the magic of compounding returns. But few investors know about what I call the tyranny of compounding costs....You put up 100% of the capital and take on all the risk, but you get only 20-something percent of the return. That's a system that is destined to fail. People will not be that dumb forever."

http://www.smartmoney.com/theproshop/index...?story=20051013

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Bogle: American Capitalism Is Doomed

By Lisa Scherzer Published: October 13, 2005

Click here for more stories by Lisa Scherzer.

AT 76 YEARS OLD, John Bogle, the founder of mutual-fund firm Vanguard, describes himself as an idealist. But you wouldn't know it from the first few pages of "The Battle for the Soul of Capitalism," which might give readers the notion that he has transformed into a gloom-and-doom cynic. Throughout his new book, Bogle paints a dire picture of the financial system, starting with a frightening comparison between 21st-century America and the fall of the Roman Empire.

http://yalepress.yale.edu/yupbooks/book.asp?isbn=0300109903

"People understand the magic of compounding returns. But few investors know about what I call the tyranny of compounding costs....You put up 100% of the capital and take on all the risk, but you get only 20-something percent of the return. That's a system that is destined to fail. People will not be that dumb forever."

http://www.smartmoney.com/theproshop/index...?story=20051013

I saw him being interviewed on CNBC Europe the other day. Was talking about how the individual cannot trust the big institutions to properly manage their investments. A clever guy.

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Guest The Dude

I saw him being interviewed on CNBC Europe the other day. Was talking about how the individual cannot trust the big institutions to properly manage their investments. A clever guy.

I don't think you need to be 'that' clever to understand that. But I take your point Murpaul.

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Brainclamp.

The term debt exile is beginning to turn up on other forums, I expect it to become mainstream terminology in several months. It is as I once speculated the case that some people in debt dump everything even thier own identity's in order to start over.

As we know it is a historical feature of capatalism - however the ID card system will close the exit from the system. There is as far as I know no laws being installed to protect individuals from the financial system and in particular the debt recovery system.

People only usually do this kind of life dumping when all else has failed and they are desparate. I fear that the only way out for some people in the future will be to take thier own lives. If you tell someone they have no future they get depressed. A finiancil system designed by banks and installed by goverment will I fear become one of our greatest mistakes.

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There was an article in the Economist a few months ago which came to the conclusion that, for many people, going bankrupt was a good strategy. ID cards or not, bankruptcies could certainly become more common.

There is a neat comparison with the 1970s, when, in Britain, the public sector went bankrupt (more or less - drawing on IMF support anyway) after fueling a debt-fuelled boom; now the private sector's about to do it.

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There was an article in the Economist a few months ago which came to the conclusion that, for many people, going bankrupt was a good strategy. ID cards or not, bankruptcies could certainly become more common.

Knew of a a couple who ran a health care company looking after elderly people - they got most of their money from the local authority. Anyhow, he employed about 80 women as carers and they didn't get paid for a few weeks. The firm basically went bankrupt and everyone expected the couple to lose their big home, their BMW, their 4x4 - nope, as far as I can make out they have had no hardship as a result of going bankrupt.

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There was an article in the Economist a few months ago which came to the conclusion that, for many people, going bankrupt was a good strategy. ID cards or not, bankruptcies could certainly become more common.

There is a neat comparison with the 1970s, when, in Britain, the public sector went bankrupt (more or less - drawing on IMF support anyway) after fueling a debt-fuelled boom; now the private sector's about to do it.

This time both public and private sector will go bust.

Incidentally when I was in Argentina I heard a story about a little town that printed its own currency and started an economy based on simple rules. I heard it worked a treat. The goverment then stopped it and it. The press briefly got hold of the story does anyone know more about it.

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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