Business

I write this after markets closed for the third quarter of 2007. I just heard John Bogle. He’s the big man with the deep voice which sounds like it wants to chuckle. He is noted as an originator in the mutual fund business. Now retired from Vanguard and an author of several books including the one with the title to this piece, he was on Bill Moyers’ Journal. When Mr. Bogle talks, I listen. After all, I’m a really mature senior and I wanted to know whether my few pennies will be safe in Vanguard Funds.
I have a stock fund, advertised as a widows’ and orphans’ investment, which seemed as solid as the Rock of Gibralter. However, a hedge fund started circling around, and so I thought I should look at what Vanguard could do for me. I don’t do day to day charts or tipsters on TV, but it does seem reasonable to pay attention to Alan Greenspan, now that he’s on the author’s circuit. He explained that the latest boom and bust phenomenon in housing was indeed global, and we should think about its significance. He doesn’t make suggestions for what the Federal Reserve should do about it, and he thinks Professor Bernanke is on top of his job. Mr. Greenspan’s cunumbrums and “exuberance” from official days had something to do with my worries. But he didn’t explain exactly what would happen next in boom and bust times, global ones at that. Dr. Bogle seemed to explain it better. The transcript of the interview can be found here: