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Together, they represent a mere 9% of the number of listed companies in America, but in 2012 they took in 28% of the equity raised on public markets and paid one-third of Wall Street fees.
Mr. Rowe estimates that the excess costs associated with management compensation, Wall Street fees and political expenditures by corporations reduce investor returns about 3percentt on average every year.
In his new book, "The Clash of Cultures: Investment vs. Speculation," Mr. Bogle rattled off a list of 401(k) shortcomings, among them excessive Wall Street fees, misguided asset allocation and failure to deal with longevity risk; for instance, someone living to age 92, but emptying a 401(k) by age 82.
We are being financially strip-mined every day -- from student loans, to pension rip-offs, to outrageous Wall Street fees for financing state and local government, to hollowed out corporations that ship jobs abroad and slash wages and benefits.
Not only would that save state and local public entities approximately $50 billion a year in Wall Street fees, but also it would dramatically reduce municipal interest rate costs.
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