We learn from the New York Times that the SEC is prosecuting a psychic, Sean David Morton, for securities fraud. He is quoted as saying “I have called ALL the highs and lows of the market giving EXACT DATES for rises and crashes over the last 14 years.”
For the victims, this is financial Darwinism at its most brutal. But for those without the stomach to watch evolution at work, it’s great to see the SEC protecting us from fortune tellers who get it wrong. I’d like to go a step further and have the agency recognize those who get it right. The SEC could create a brand new NRSRO designation (“Nationally Recognized, Systematically Revelatory Oracle”). Presumably Sean David Morton would not have qualified. But given how the original NRSRO designation worked out, who knows?