I have not read any book written by Bogle, but
A Random Walk Down Wall Street, a book written by Malkiel (a director of Vanguard, and I believe a friend of Bogle), is a favorite of mine.
In Malkiel's book, he allows that the Efficient-Market Hypothesis (EMH) does have some holes. He himself tells of a joke that if one sees a $20 bill laying on the sidewalk, an EMH economist would not bother to bend down to get it. Our economist would reason that the stray dollar bill would have to be an illusion, for if it were real, someone would have already picked it up, and it would not be his luck to remain there.
I remember an article in WSJ back then about the housing bubble, and it opened with this sentence: "This is going to end in tears". One did not have to be very smart to know the mania was not going to last. But it took more work, and a strong conviction, to capitalize on it. In the case of Michael Burry, he was early, but had a strong stomach to wait to be proven right.
Same as Yakers and many of us, I shook my head at the housing mania, and tried to protect myself by making sure I owned no home builders, no banks, no mortgage companies. It was not enough! I surely did not have the courage to short the "bastards" that caused us this mess.
I did not see the $20 bill on the sidewalk. I did not even know where to look. Michael Burry did see that stray dollar bill, and he reached for it despite being ridiculed at that time. Note that Bogle's mention of Burry's hedge fund was made way back in 2001, before the start of the housing mania. So, from that article, one could not say what Bogle thought of Burry's betting against the banking industry a few years later.
About what to do now, I am no economist, nor money manager, to have a strong conviction of what to do. However, I will mention that I have read or seen Malkiel in the media recently, on more than one occasion, pointing out that emerging markets are cheaper than developed countries, in terms of P/E, potential for growth, and also dividend yields. These countries also have lower debts, in terms of their GDP. As I do not know about individual foreign stocks, particularly small-cap stocks, nor know of a way to easily purchase foreign stocks that do not exist in ADR form, I just buy indexed ETFs. So far, they have been beaten down and do not look good compared to the S&P. So, I may be a bit early, but by nibbling here and there, it is still a small percentage of portfolio, and I have learned to be patient.
By the way, I saw the following in Wikipedia. Note the 2nd paragraph.
Burton Gordon Malkiel (born August 28, 1932) is an American economist and writer, most famous for his classic finance book A Random Walk Down Wall Street (now in its 10th edition, 2011). He is a leading proponent of the efficient market hypothesis, which contends that prices of publicly traded assets reflect all publicly available information, although he has also pointed out that some markets are evidently inefficient, exhibiting signs of non-random walk.
Malkiel in general supports buying and holding index funds as the most effective portfolio-management strategy, but does think it is viable to actively manage "around the edges" of such a portfolio, as financial markets are not totally efficient.