From Bill Bonner at Bonner & Partners via theburningplatform.com:
Mr. Market Gets Even
Yes, prices are being discovered again… by free declaration of buyers and sellers.
Owners of Greek stocks are discovering that their equity stakes aren’t as valuable as they believed.
But for every seller there is a buyer…
Sellers are losing money. Buyers believe they are getting a bargain.
You can fool all of the people some of the time. Some of the people all of the time. And most of the people once in a while.
You can obstruct price discovery and you can disguise and distort the real value of things. But Mr. Market will get even someday. He always does.
Yesterday, we mentioned but did not explain, that Alan Greenspan betrayed Mr. Market…
In 1987, after President Reagan appointed him Paul Volker’s successor as chairman of the Federal Reserve, Greenspan went over to the zombies… or more precisely, to their allies, the cronies.
It must not have been easy for the former free market defender and member of Ayn Rand’s inner circle…
The Largest Paper Money Racket Ever
In the late 1980s and early 1990s – you could almost see Greenspan struggling with the contradictions.
He had been loyal to free markets. But his job carried with it the biggest central planning authority of all time. He knew that currency unbacked by gold was a scam, but his position as chief of the Fed put him in charge of the largest paper money racket ever.
Greenspan believed in letting Mr. Market set prices. But as gatekeeper of U.S. credit, he corrupted more prices than any human being ever had before him.
But what was he to do?
In 1993, at her husband’s inaugural address to Congress, Ms. Clinton – now the leading Democratic candidate for president – chose to stand next to him. It was one of those magic moments in history, when power and money came together to celebrate.
(When we were in Vancouver, we went to an Anglican church. A banner hung down from the ceiling proudly proclaiming the trinity: “King, Country, God.” The parishioners like to imagine that all their leaders are united… It spares them the trouble of choosing just one.)
Of all the bigwigs in Washington, it was Alan Greenspan who had the biggest wig of all. He was practically a god to the members of Congress, to whom the economy was as big a mystery as Heaven itself.
To continue reading: Who Is Left to Speak The Truth?
