The Next Round of the Crisis Will Reveal that the Entire System is Based on Fraud | Zero Hedge.
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.
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