Financial Commentators Adding to a Crisis of Confidence

What good is free speech without courage to tell the truth?

I have taken off my robe;
How can I put it on again?
—Song of Solomon

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Per the "crisis of confidence" discussed in the following piece, Ron Insana only lightly hits on the issue of "market structure" as a cause of this crisis.




Let's face it. The ongoing risk of being hoodwinked and defrauded — stuck with billions in securities without a market — is the more likely cause of the crisis of confidence these folks falsely diagnose.

Now, Insana citing the market's structure strictly is referring to its mechanics, such as helped facilitate the "flash crash" of May 6, 2010. However, extending the market's structure to its regulatory component you find the real source of this crisis. The rule of law has been vanquished.

These people would just ignore the outright fraud and opaque transparency that has become the way of business these days. Their benefactors, too, apparently believe the securitization market can be revitalized despite this nagging ambiguity. There's no chance. Furthermore, ignoring this reality while attempting to impose a fantasy — a nasty head fake — only adds to this crisis of confidence we face.

—Tom Chechatka