So much of the glue that is holding this ponzi scheme together that we casually refer to as the "world's finance and banking system" is not even real. Some hedge fund portfolios are leveraged 10 to 1, or more, against assets that quite literally don't exist. That's the central issue with this Bear Stearns (BCS) fund called "Grade Structured Credit Strategies Enhanced Leverage Fund and High Grade Structured Credit Strategies Fund," that has been teetering on the brink of collapse this week. Anyone wonder why Wall Street cordoned-off this fund like it was the child of god? If markets were capable (or allowed) to act as a discount mechanism like in the good 'ole days, a lot of money would be running for the exits with hair ablaze. And where is Christopher Cox and the SEC anyway in this obvious exercise of market manipulation and obfuscation? But the Investment Banking Cartel knows that its game would come, literally, to a crashing end. And unfortunately, the sundry government agencies that are supposed to protect us from such schemes are also on the cartel's payroll. Can you imagine the penalty levied against a single individual for intervening in a single illiquid stock in the interest of giving his or her friends time to exit unharmed? Its the same thing only multiplied by a few billion. So they've all rushed to keep the dream (read: scheme) alive. Forestalling market corrections and/or outright financial dislocations as in what would and should have happened to the "Bear Fund" only emboldens further risk taking and adds to investor complacency. As a result, this further prolongs this era of malinvestment which will eventually assure us that when things do unravel, its going to be spectacularly, breathtakingly, catastrophic.
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