What Mutual-Fund Scandal?

The Wall Street Journal ^ | Thursday, January 8, 2004 | HENRY G. MANNE

[presidio9]

For months now, Eliot Spitzer has terrified the investing public with lurid charges of mutual-fund high jinks. Vast sums of money are alleged to have been lost by long-term investors because some funds allowed a favored few to engage in late trading (using new information to trade in funds at the "stale" price after the legal 4 p.m. closing time) or market timing (basically arbitraging stale-priced funds within fund families). But there is much more innocent behavior and more public welfare in this mutual-fund story than has appeared in the press, and vastly less damage than Mr. Spitzer would have us believe.

[q_an_a]

I don't know who this guy is but the idea that people trading after hours is somehow a good idea makes me want to puke. It is close to some garbage like "the little guy does not get hurt by______ he benefits." which is used to explain away rank pollution or bad working conditions as good for the economy.

Conservatives taking care of others is not the same as the Hindu concept of let others alone because they deserve what they get.

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[Deuce]

But it is certainly not acceptable to assume, as Mr. Zitzewitz did, and as Mr. Spitzer zealously approved, that timers' revenues are actually being squeezed out of long-term investors.

I agree with your comments. I wonder how drivel like the above quote from the article (which is just one example of the drivel in the article) make it past editors at the WSJ? Are they asleep?

[q_an_a]

agreed. too many conservatives in business or politics think that illegal greed is the same as hard work and playing by the rules.

having worked in/with some 501 3 c charities I can say that too many people like fastows (enron) wife think that a charity is about the annual ball and do everything they can to undermind work in favor of the benefits to the profile of the work. just another form of greed.