I mentioned in an earlier blog how bank and investment company net worth figures were daily being devalued to so-called “toxic” levels. Those levels were actually a fiction, brought on by an illiquid market, where true fair value was impossible to determine.
There were defenders on Wall Street for this sham. Some insisted that rules were rules to be defended in emergencies as if they were cast in stone. After all, the rules became a boon for Wall Street short sellers and the avalanche of constant traders that make up the financial community, The folks to which the media give far too much attention.
Ever-lower values were thereby being created for securities with little or no true market with which to establish real market values. And it produced volatility that makes for tremendous trading profits among short-term traders who predominate the financial community.
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