The legendary Vanguard investor John C. Bogle is feeling extremely bearish these days. Excerpt:

“It’s urgent that people wake up,” he says. Why? This is the worst time for investors that he has ever seen — and after more than 60 years in the business, that’s saying a lot.

Start with the economy, the ultimate source of long-term stock market returns. “The economy has clouds hovering over it,” Mr. Bogle says. “And the financial system has been damaged. The risk of a black-swan event — of something unlikely but apocalyptic — is small, but it’s real.”

More:

Still, because the market and the economy are deeply troubled, it’s time for action on many fronts, he says: “We’ve really got no choice. We’ve got to fix this system. All of us, as individuals, need to do it.”

That’s the message of his latest and 11th book, “The Clash of the Cultures: Investment vs. Speculation” (Wiley & Sons, $29.95). It offers a scathing critique of the financial services industry and updated guidance for investors. “A culture of short-term speculation has run rampant,” he writes, “superseding the culture of long-term investment that was dominant earlier in the post-World War II era.”

Too much money is aimed at short-term speculation — the seeking of quick profit with little concern for the future. The financial system has been wounded by a flood of so-called innovations that merely promote hyper-rapid trading, market timing and shortsighted corporate maneuvering. Individual investors are being shortchanged, he writes.

Corporate money is flooding into political campaigns. The American retirement system faces a train wreck. America’s fundamental values are threatened. Mr. Bogle remains a dyed-in-the-wool capitalist but says the system has “gotten out of balance,” threatening our entire society.

If we have a big crash, we’ll fix these structural problems. Oh, wait…

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