Set forth below is the text of a comment that I recently posted to another blog entry at this site:
If I witnessed a crime as heinous as you believe this one to be, I would call the police, the FBI, newspapers, TV stations, everyone. You just sit, waiting for other people to do something.
I’ve filed several police reports. I’ve spoken with the FBI. I’ve contacted many newspapers. I haven’t contacted any TV stations, but TV stations often look to the major newspapers to determine what is news so I think it makes sense to start with newspapers. I’ve done everything you recommend here, X.
And I will continue doing it. It is a rare day that goes by in which I do not contact someone re this matter.
You need to look at the math. The relentless promotion of Buy-and-Hold strategies caused the market to be overpriced by $12 trillion. Do you have any idea how much money that is?
That $12 trillion was essentially marketing money for Buy-and-Hold. The money wasn’t real. It was temporary, pretend money. But the Buy-and-Holders told people it was real. And they took credit for it! They told people that they could use this money to finance their retirements! That is why we are in such a mess today.
Which newspaper do you think wants to be the one to tell people that the money they were planning to use to finance their retirements is Pretend Money?
Which investment advisor do you think wants to do that?
Which policymaker wants to do that?
And, after we experience an economic crisis because of the relentless promotion of this Get Rich Quick garbage, who do you think wants to spill the beans by telling people that it was caused by the Buy-and-Holders?
The newspaper that ran articles saying Buy-and-Hold might work?
The investment advisor who advised his clients to consider Buy-and-Hold “strategies”?
The policymaker who did nothing while he saw the Buy-and-Holders promote their Get Rich Quick con 24/7 everywhere investors turned to for advice?
Everybody wanted to be on the gravy train for so long as it was running.
And now that it is not running so hard anymore few want to make the world angry at them for telling them the truth.
Get Rich Quick sells, X. It never, never, never works in the long run. But, man, does it sell! That’s why Buy-and-Hold is so freakin’ popular. The Buy-and-Holders cannot provide a URL to a single study that supports it. But millions don’t care. They love them some Get Rich Quick and they are happy to give their business to anyone who pushes Get Rich Quick extra hard. And I think it would be fair to say that no one pushes Get Rich Quick harder than the Buy-and-Holders.
There’s a snag in all this Get Rich Quick nonsense.
The snag is that Buy-and-Hold always causes financial devastation for everyone taken in by its claims. The collective losses are always large enough to bring on an economic crisis. So we all end up in the soup in the end. Some funny joke, huh?
That’s when prison sentences are announced for people like you, X.
We KNOW that Get Rich Quick is bad for us. We also know that it is insanely profitable in the short term. So we adopted laws to stop people from pushing it too hard. We made financial fraud a felony. We did that for a good reason. We did it because otherwise people like you would destroy our economic system. We wanted to create a DISINCENTIVE for the use of all the insanely abusive practices that you have engaged in over the past 12 years to stop people from learning what the peer-reviewed research really says.
You ignored those laws, X. Your bad.
The good news here is that we did not have 33 years of peer-reviewed research showing us how dangerous Buy-and-Hold is after the earlier three economic crises. We now have that. So we never have to go through this again.
There won’t be any reason for people to be reluctant to hear the truth following the next crash. Most of their money will already be gone! The abusive tactics just won’t work anymore.
Emotions will be the opposite of what they are today. Today people are desperate not to hear that they were conned. Following the next crash, they will be angry as can be. They will be looking to hang those who have advocated Buy-and-Hold strategies from a tree. The internet will supply them with the names of the people they are looking for.
Do you see?
I have spoken to the police and to 30,000 academic researchers and to all the big names in this field. I will continue to do so.
What will soon be changing is the REACTION that I will be obtaining when I tell people about this massive act of financial fraud.
I hope you understand. This is a society-wide problem and it is going to take an entire society to solve it.
Get Rich Quick is not the answer. Get Rich Quick is the problem.
We are on our way to solving that problem. The research that I co-authored with Wade Pfau shows that 70 percent of the risk of stock investing comes from the temptation to believe the Wall Street Con Men and follow Buy-and-Hold “strategies.” All that is coming to an end. No one likes a Ponzi scheme after it busts.
I naturally wish you all of the best that this life has to offer a person regardless of what investing strategies you elect to pursue.