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A Healthy Financial System Cannot be Built on Fraud
The biggest problem with the financial markets today is the fraud.
Fraud is endemic in the financial system today. We know that the currency, stock, bond, and even commodity markets have ALL been manipulated by Investment Banks or Central Banks.
No matter how sophisticated your analysis is, if your data inputs are garbage, your forecasts are garbage. We now know that the prices in just about every asset under the sun are garbage. Good luck computing with that.
Then there is balance sheet fraud. After the 2008 Crash, the regulators suspended accounting standards that required the banks to price their assets at market-based values. The reason the regulators did this was because the market priced these assets at pennies on the Dollar, if not ZERO.
This meant that most banks were insolvent and bankrupt.
Today, most banks are valuing assets on their balance sheets using mark to model accounting standards. Since the “models” used to price these assets are developed by the banks themselves with NO oversight, “mark to Model” is effectively a phrase term for “make believe.”
Beyond simple price manipulation and balance sheet fraud, we also know that earnings, or the money that companies allegedly make after costs, are fraudulent.
Indeed, a study performed by Duke University found that roughly 20% of publicly traded firms manipulate their earnings to make them appear better than they really are. The folks who were surveyed for this study about this practice were the actual CFOs at the firms themselves.
The reality is that this practice is far more endemic than the 20% discovered in this study (it’s likely over 50%). Given that most C-level compensation packages are based on stock options, the value of which is determined by stock prices… which respond to earnings beats, CFOs have tens of millions of Dollars worth of personal wealth on the line when it comes to massaging earnings.
So… the prices of assets are fraudulent, the value of balance sheets is fraudulent, and earnings are fraudulent. This means that stock market caps, balance sheets, and income statements are all inaccurate representations of reality.
Sitting atop this mountain of fraud is the Federal Reserve…. the US Central Bank that owes its very existence to fraud (if Americans understood how the Fed was created and who controls it, it would have ceased to exist decades ago).
This is the same organization that claims inflation is too low, that the Wall Street bailouts were about helping Main Street, that the US is in recovery, that it will not monetize the US debt, that it has an exit strategy for its $4+ trillion balance sheet, that it is an independent entity etc.
At this point, finding a data point or claim in the financial industry that isn’t massaged or an outright lie is like finding a needle in a haystack. The entire system is rotted structure built on a foundation of lies, manipulations, and deceits.
Until the garbage is cleared out we are set for another crisis. The only difference is that this time around, when stuff hits the fan, the entire system will break, not just a handful of banks.
If you’ve yet to take action to prepare for the second round of the financial crisis, we offer a FREE investment report Financial Crisis "Round Two" Survival Guide that outlines easy, simple to follow strategies you can use to not only protect your portfolio from a market downturn, but actually produce profits.
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Best Regards
Phoenix Capital Research
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USG is the root-cause of all America's problems - period
What do you expect when there is no punishment?
"Without admitting guilt".. HAHAHA
"Large Fine to Deter"..... HAHAHA
How about a "Ban from the industry'?
"Incarceration'? Heaven forbid!
Until they enforce laws, there will be the lawless.
Es a Damn Shame that the US Financial System is Built on Nothing but Fraud today.
Here's a little piece that explains it:
Banning Cash - Part IIThe only ones who benefit from the conflation of money and credit are the issuers of credit with no money.
Just add in corrupt regulators and just plain stupid DAs and there you go! What fraud?
The financial system doesn't need a colonoscopy, or an enema - it needs to be disemboweled.
you cannot be serious, history is one huge fraud, a fraudulent recounting of fraudulent behavior, sterlized and written at a third grade level, with unicorns. once the perps are dead we disintern their corpses if only to prove how much more enlightened we are today. the late last century the fraud was in pro forma earnings, but one you convince people they can hold fiat, you can sell them anything.
Its not just one hedge fund. The banking system itself is born from fraud!!! This is the best explaination I have seen. It goes from the fraud of goldsmith bankers all the way to present. It takes a few hours to get through but is certainly worth the read.
http://www.debtcrash.report/entry/history-and-introduction