By Paul Solman
September 26, 2012
Boston University economist, pension guru and longtime friend of Making Sen$e Zvi Bodie has been featured often here, most recently on I-bonds, and TIPS. You can see him on Making Sen$e here and on the NewsHour here.
We hadn’t heard from Zvi for a while. But we’ve known for years how irate he gets when “experts” peddle investment advice to the masses that isn’t grounded in economics. (Robert “Rich Dad, Poor Dad” Kiyosaki is a special non-favorite, especially when he gets airtime on PBS.) So it came as no surprise when we heard from Zvi recently, jubilant that finally the Securities and Exchange Commission is moving against a so-called expert. I asked Zvi to expand on his reaction for our readership. Here’s what he sent.
Zvi Bodie: As you and I have discussed many times before, Paul, there is no shortage of misleading and even fraudulent investment advice being foisted upon the public through the media, in free seminars, and in face-to-face sales pitches by so-called financial advisors. What excited me about this particular move by the SEC is that the target is not an obvious criminal like Madoff, or a self-aggrandizing con-artist like Kiyosaki, but a fellow who is apparently well-intentioned and fairly typical of most practicing investment advisers in the U.S. today. The SEC is claiming that the statistical information he used in his seminars is not valid and that he should stop using it in his communications with the public…
Read the full article at PBS.org.