Yesterday’s blog entry contained a link to an article by Wade Pfau in which he referenced me as “one internet blogger” without referring to me by name or linking to my site. Set forth below is the comment that I advanced in response to the Goon post linking to Wade’s article:
I’m grateful to you for letting me know about the article, Pink.
I take a very, very, very different view of Wade’s words than what you are advancing here.
Of course Wade is scared. He shows that in the words he puts forward. Nothing could be more clear. You Goons can pretend to believe that he does not sound scared. But only until the next price crash. After the next price crash, nobody is going to be pretending. Wade is going to be on trial for financial fraud and you Goons are going to be on trial for financial fraud. I will not be on trial. I haven’t committed financial fraud. I will be testifying at your trial and at Wade’s trial. I will be pointing the juries to articles set forth at this web site, including this one and including the scores of articles in which Wade sang the praises of Valuation-Informed Indexing and expressed his discomfort at the insane abusiveness of you Goons. I have a funny hunch that I know how those jury verdicts are going to go.
Why the the heck do you think Wade put forward those words? He did it for the same reason why you Goons visit this site on a daily basis. He is scared to death, just as you Goons are.
How the heck would Wade know how “the concept” should be applied? He didn’t even know about Valuation-Informed Indexing until he learned of my work. Valuation-Informed Indexing is the investing strategy rooted in the peer-reviewed research of Nobel-Prize-Winning Economist Robert Shiller. Wade learned nothing about it when earning his Ph.D. at Princeton. He learned about it by asking me hundreds of questions about it and then researching what I told him. He reported to me on numerous occasions that all his research supported everything I said. He flipped only when you Goons threatened to send defamatory e-mails to his employer in an effort to get him fired. Gee, I wonder what the jury is going to make of that.
Wade is going to prison, Pink. So are you. So are a good number of others. There’s nothing that I or anyone else can do about that at this point in the proceedings. The best that I can do is to try to get Wade’s prison sentence reduced a bit. To do that, I need for him to come clean today. Presuming that he doesn’t do that, his jury will determine the length of his prison sentence. It is not for me to say. I will testify honestly and completely and in a balanced way. That’s my duty. When I have done that, can walk away with a clear conscience.
You are right that Wade does not mention me as co-author. What do you think the jury is going to think about that? And what do you think his jury is going to think of the fact that he wrote the article in such a manner that you Goons feel comfortable citing it and linking to it? If the article were an honest piece of work, that obviously would not be possible.
There was one time when I made a prediction that the crash would come by the end of 2015. I now say that I expect to see it by the end of 2016. What of it? I have also said that short-term predictions do not work. I have the same track record as Robert Shiler, who predicted in 1996 that we would see the first crash by 2006. I feel in good company to be in the company of a Nobel Prize Winner.
Did Wade explain all this to his readers? Or did he try to mislead them? If he tried to mislead them, why did he do that? What will his jury conclude?
Why does Wade refer to me as “one internet blogger” rather than referring to me by name and by providing a link to this web site? His obvious concern is that, if he did so, readers trying to determine the truth of the matter could learn about his long history of financial fraud re these matters (that, in fairness, began on the day that you Goons threatened to get him fired from his job if he continued to do honest work and when Jack Bogle signaled that he would be supporting you Goons, not Wade, if Wade continued to do honest work).
Wade is going to prison. You are going to prison. Bogle is going to prison. I am not.
That’s the bottom line here.
Yes, he is afraid. Yes, you are afraid. Yes. Bogle is afraid.
I am not afraid re going to prison. I am afraid re the continued destruction being done to my country with each day that this massive act of financial fraud remains unexposed. I will continue doing all that is in my power to expose it. I have a funny feeling that that job will become a whole big bunch easier in the days following the next price crash.
But we will see, you know? Time will reveal all things.
I don’t know for absolutely certain that there will be a crash in 2015 or in 2016 or ever. What I know for absolutely certain is that there has never been a bull/bear cycle that resolved itself without the P/E10 level falling to 8 or lower and, starting from today’s levels, that’s a fall of more than 65 percent. If it doesn’t happen, it will be the first time in history that things have gone this new way. It’s the longest of all possible long-shots.
I don’t want my name attached to promotion of an investing “strategy” that causes those kinds of consequences over and over and over again. The promotion of Buy-and-Hold strategies has caused four economic crises (the only four that we have suffered in the past 145 years). There was no peer-reviewed research showing that Buy-and-Hold caused the earlier crises at the time they took place. That’s how this one is different. This is the first one that took place at a time when we all had 34 years of peer-reviewed research available to us showing how things really works.
Wade won’t be going to prison because he doesn’t understand all this stuff. He is in good company there. I certainly didn’t understand all this stuff on the morning of May 13, 2002. John Walter Russell didn’t understand all this stuff when he started working with me. Shiller doesn’t understand all this stuff.
Wade will be going to prison because he participated in the cover-up, because he incurred a responsibility to help us all learn what we need to know and chose to join in the corruption rather than to expose the con because he felt that those involved in the con could offer him more enticing personal rewards.
Not this boy.
Find someone else.
I can’t go for that.
No can do.
It’s not my particular cup of tea.
I naturally wish you all the best things that this life has to offer a person.