Never mind the fiscal cliff, it's speculation that could do the financial markets in, says...

|By:, SA News Editor

Never mind the fiscal cliff, it's speculation that could do the financial markets in, says Vanguard founder Jack Bogle. Companies raise about $250B a year in equity financing through IPOs and additional equity offerings - but there's $33T worth of trading going on. "The role of the financial system is to direct capital to its highest and best and most profitable uses," Bogle says. But this is simply "betting on the psychology of the markets. It makes no sense."