I mentioned in an earlier blog how bank and investment company net worth figures had been daily 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. The rules then became a boon for Wall Street short
sellers and the avalanche of constant traders that make up the
financial community, 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 made for tremendous trading profits among short-term
traders who predominate the financial community.(See the Earl J.
Weinreb NewsHole® comments.)
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