Source: Sipa USA Tom Williams/CQ-Roll Call/Sipa U
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They say when the tide goes out, you find out who is swimming naked. And we have just seen a king tide that, if history is any guide, enabled an epidemic of skinny-dipping.
Frauds have been happening for years, with lies, concealments and half-truths having contributed to the ballooning value of stocks over the past decade. But throughout this up-only market, it was very hard to find victims — company owners weren’t mad that management was committing fraud, they were enriched by it.
The bust of crypto exchange FTX is a spectacular example of what I’m talking about. It looked like an ultra-profitable work of genius, but it was ultimately a house of cards run by imbeciles.
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