If you’ve ever suspected that Wall Street stacks the statistical deck to boost share prices, here’s an academic paper that explains exactly how it is done. The author, Wim Grommen, a Rick’s Picks reader from the Netherlands, goes as far as calling the constant recalculating and rejiggering of the Dow Industrial Average a pyramid scheme. Click here for the complete study, which explains how, from a mathematician’s perspective, the Crash of 1929, as well as the exponential rise of U.S. stocks during the 1990s, were brought on by bogus math.
