Further to my previous blog with regard to the short-term psychology that permeated the entire useless, extraordinarily expensive, government bailout philosophy, whereby bank and investment company net worth figures were daily devalued to so-called “toxic” levels:
There were defenders on Wall Street for this sham. Some insisted that standard accounting rules were to be defended as if they were cast in stone. After all, the rules became a boon for Wall Street short sellers and the avalanche of traders that make up the financial community, The folks to which the media give far too much attention.
Ever-lower values were thereby created for securities with little or no true market with which to establish real values. And it produced volatility that made for tremendous trading profits among short-term traders who predominate the scene.
This created havoc among all other small and large investors in pension and institutional funds, who look to the long-term and are not interested in daily or even weekly pricing. All true investors got run over by this mark-to-market onslaught.
Along with the economy.(See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)
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