Most of the stock of a typical American corporation is owned by institutional investors like mutual funds and pension funds. They drive a lot of corporate policy via the Board. And since they are being evaluated on their performance by mutual fund members who largely don’t even know what stock they own, the herd of pure capitalism is running wild. Before the advent of mutual funds, derivatives, and program trading, this wasn’t as much of a problem as more humans knew what stocks they owned.

We’ve built a monster that it eating us up.