logo
g Text Version
Beauty & Self
Books & Music
Career
Computers
Education
Family
Food & Wine
Health & Fitness
Hobbies & Crafts
Home & Garden
Money
News & Politics
Relationships
Religion & Spirituality
Sports
Travel & Culture
TV & Movies

dailyclick
Bored? Games!
Nutrition
Postcards
Take a Quiz
Rate My Photo

new
Action Movies
Bible Basics
Houseplants
Romance Movies
Creativity
Family Travel
Southwest USA


dailyclick
All times in EST

Full Schedule
g
g Investing Site

BellaOnline's Investing Editor

g

Modern Financial Markets Truisms

Guest Author - Tony Daltorio

It has been one year since the stock market started its rally. This was after a terrible bear market following the collapse of Wall Street firm Lehman Brothers.

You remember that time...Wall Street, drunk with greed, drove the nation's economy to the brink of financial Armageddon.

To save Wall Street from losing their license to dangle the nation's economy off a cliff, the Federal Reserve and country's elected elite and their minions at their Treasury Department threw Wall Street a bailout party.

Treasury secretary Tim Geithner, while head of the New York Fed, approved billions of taxpayers dollars to go to Goldman Sachs through the AIG conduit.

Most of the details of that deal have been sealed for a decade by the government due to "national security concerns". What a joke!

Then the government allowed Wall Street banks to replace mark-to-market accounting. Mark-to-market means that banks had to value assets (loans, etc.) at what they are really worth in the marketplace.

This was replaced with mark-to-model accounting which valued assets at some number based on some theoretical model of what the assets should be worth. In effect, this is mark-so-I-get-a-bonus accounting.

LEHMAN BROTHERS

Just this week, we had the bankruptcy report on Lehman Brothers. It was a damning report.

Once again the investing public learns, after the fact, the basic truisms of modern US financial markets.

We had already learned that the ratings agencies - Moody's and Standard & Poor's were worthless. Since they were paid by Wall Street, they would rate almost anything put out by Wall Street as AAA. No matter what kind of snake oil Wall Street was selling to investors.

Now with the Lehman bankruptcy report, we've learned that major accounting firms are also worthless to investors. They were either unable or unwilling to detract fraud at Lehman amounting to $50 billion dollars!

Based on the bankruptcy court report, Lehman was technically insolvent for years before it collapsed.

Yet former Lehman CEO Dick Fuld claims he knew nothing about the billions of dollars being hidden by Lehman 'off balance sheet'. Yeah, right. That tells you something about the ethics of Wall Street.

This report should also tell investors that the Securities and Exchange Commission (SEC) is also worthless. Their list of failures includes Bernie Madoff and now Lehman Brothers.

They are supposed to protect investors, but they don't. The SEC seems to believe the criminal executives who commit the fraud, and ignore the whistle-blowers who uncover the fraud.

Finally, this should tell investors something about stock market analysts and the financial media. There is no real analysis being done...they are just cheerleaders and mouthpieces for Wall Street.

It's no wonder that faith globally in the American brand of capitalism is at an all-time low.
Add Modern+Financial+Markets+Truisms to Twitter Add Modern+Financial+Markets+Truisms to Facebook Add Modern+Financial+Markets+Truisms to MySpace Add Modern+Financial+Markets+Truisms to Del.icio.us Digg Modern+Financial+Markets+Truisms Add Modern+Financial+Markets+Truisms to Yahoo My Web Add Modern+Financial+Markets+Truisms to Google Bookmarks Add Modern+Financial+Markets+Truisms to Stumbleupon Add Modern+Financial+Markets+Truisms to Reddit



 



RSS | Related Articles | Editor's Picks Articles | Top Ten Articles | Previous Features | Site Map




For FREE email updates, subscribe to the Investing Newsletter


Past Issues


print
Printer Friendly
bookmark
Bookmark
tell friend
Tell a Friend
forum
Forum
email
Email Editor


Content copyright © 2014 by Tony Daltorio. All rights reserved.
This content was written by Tony Daltorio. If you wish to use this content in any manner, you need written permission. Contact Sandra Baublitz for details.

g


g features
Investing in Water

Retirement Income Bucket Method

The Bank Security Breach

Archives | Site Map

forum
Forum
email
Contact

Past Issues
memberscenter


vote
Poetry
Daily
Weekly
Monthly
Less than Monthly



BellaOnline on Facebook
g


| About BellaOnline | Privacy Policy | Advertising | Become an Editor |
Website copyright © 2014 Minerva WebWorks LLC. All rights reserved.


BellaOnline Editor