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> This is fearmongering. Spoiler, the article is actually a playful response to a fear-mongering article titled "The Silent Road To Serfdom," with a bit of ins
by brownbat 8y ago
> This is fearmongering.
Spoiler, the article is actually a playful response to a fear-mongering article titled "The Silent Road To Serfdom," with a bit of inspiration from Asimov at the end.
The title is bait for misinterpretation, because the title is the original article's thesis that Matt is riffing on.
Matt Levine is a really fun writer, and I recommend the click to anyone who skipped it because they thought the title was the main and uninteresting point of this piece.
- alexgmcm 8y agoYeah - it took like the first paragraph to realise he was taking the piss... people should really read beyond the title.
- ucaetano 8y agoIt isn't just the title, 2/3rds of the article are about index funds: > Are Index Funds Communist? > But when those thoughtful active analysts are replaced with passive index funds, the market stops serving that function. > Indexing is cheaper, yes, but that's because active management has positive externalities, and if no one will pay for it, those benefits will disappear. > But more fundamentally, there is an alternative view that the rise of passive investing will improve capital allocation > The passive investors can't influence relative prices > Their worry is that the growth in passive and quasi-passive products > Or I guess pure indexing -- everyone passively throws money at everything that there is, with no judgment at all -- is an imaginable fourth answer, and is strictly worse than the others.
- deleted 8y ago[deleted]