Excellent piece.
I'd add that we have reentered the Boom/Bust cycle that characterized the US Economy prior to the implementation of Financial Sector restraints during the FDR Administration. Those restraints finally biting the dust with the passing of the Gramm-Leach-Blilely Act, which eliminated Glass Steagall, and the Commodities Modernization Act of 2000 that deregulated derivatives and hedge funds, empowering the greatest engine of global financial fraud in human history.
Further, I would be curious if profits being reported by companies, in absence of real economic activity, are actually due to investment of capital in the Wall Street fraud factory, and not representative of the core health of their business. Since the fall of Arthur Andersen due to the ENRON collapse did nothing to change the culture of fraud in Corporate Accounting, my guess is that multiple sets of books would make getting to the bottom of that mystery nearly impossible, so we will just have to sort this out in the postmortem of the next crash.
Finally, I am curious if the encrypted "Insurance" file WikiLeaks distributed a couple of years ago, does, in fact, contain the smoking gun that Banks and Hedge Funds were counterfeiting principal for investment by the means of unregulated Alchemy of derivative/CDS Contract creation.
Read the Article at HuffingtonPost
No comments:
Post a Comment