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.
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 defender of the free market and member of Ayn Rand’s inner circle…