John Bogle, the indefatigable founder of Vanguard and shareholder activist, likened the current financial crisis to a “speculative orgy like nothing we have ever seen before in the history of the United States,” speaking over the weekend on National Public Radio.

 

Bogle lay the crux of the problem at the feet of collateralized debt obligations that firms created to eke more yield out of the market.

Stock turnover today is double what it was in 1929, and speculators, not traders, drive today’s market, Bogle said.

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