Karl Denninger..The Market Ticker

No rational buyer wants to pay book value for the average large bank today because most sophisticated M&A professionals know that disclosed loss rates on loans and securities are currently understated. Our guess is that due to poor disclosure, price manipulation by the Fed and regulatory forbearance, current charge-off rates in the US banking industry are understated by 1/3 to 1/2 of the true economic loss.



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I believe this.

I do believe the fed's know the scope of "disclosed loss rates on loans and securities are currently understated". Imo, this is why the market keeps going up, it is factored in. I also think that the losses were on laid out on the table soon after Lehman failure and disclosed with "immunity". Tell us your number (loss) we won't hold it against you.
 
if you stop trading because market is manipulated, you might just stop trading altogether.

For example the bubble of NASDAQ in 2000,

You wouldnt have traded from 1998-2001, 4 years absence because stocks were in a bubble and everybody knew it.

Face it, trading is more about making money then fighting the trend, even if you don't like the trend.
 
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