by Karl Denninger
So another week goes in the books with the market averages down about 5% each.
In Europe it’s much worse. The DAX was off about 10% in the last two days. Bank stocks worldwide are collapsing, with some threatening their 2008/09 lows and a few exceeding them.
The US market as a whole has lost nearly 20%, nearly straight down, with four straight weeks of losses. The entirety of the “gains” since QE2 was announced are now gone – a year of market advance destroyed in less than four weeks.
Why is your 401k and IRA being ravaged – again?
Simply put, we have not stopped financial institution lies.
Sarbanes-Oxley allegedly makes every public company CEO attest under penalty of perjury (and a separate criminal offense) that the financials they present to the public are true, correct and complete. If this law is being followed and violations prosecuted can someone explain to me why Colonial Bank, along with others, failed and then had their assets valued by the FDIC during consolidation at 20, 30, even 40% less than the publicly-presented values on those balance sheets just weeks before?
Why aren’t the executives who “signed” those balance sheets all facing federal indictment?
This is not (just) a United States problem, but the banks over in Europe that are in trouble have, in many cases, branches here in the US and trade in United States markets. Some – such as Barclays, Credit Suisse, Deutsche Bank and HSBC, are even “primary dealers” and thus participants in US Treasury auctions. Why is not US law applied to those firms that are considered “essential” to US financial stability?