Hedge funds may not be a long-term threat to mutual funds. That is the good news for mutual fund firms provided Monday by the unlikely source of John Bogle. While speaking at the annual AIMR meeting, Bogle predicted that hedge funds will see their growth slow because of industry "blow ups."

"There will be some big blow-ups ... that will stem people's appetites (for hedge funds)," Bogle told the gathered analysts according to Dow Jones.

Bogle did not disappoint those hoping to hear a critic of excess. While he focused his remarks on what he sees as a culture of greed that has overtaken corporate America, he also said that he is "quite disappointed" that Congress has failed to show more interest in addressing issues raised by the mutual fund scandals.

Yet, he also excused the legislators noting that, "The mutual fund crisis is hardly the biggest crisis our legislators face."

He called for corporations to reform from within and for public firms to cease giving earnings guidance to analysts. Such guidance only leads to expectations from the market, he said. He also decried the widespread use of options to enrich insiders at the cost of diluting shareholders, the short attention span of many investors and the growing gap between executive and worker pay.  

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