As leveraged assets go down in value, the leverage multiples go up. Adding to that multiple is the falling dollar and the fact that these assets are in reality debt deposits, not cash deposits, that were passed on in different forms to be leveraged over and over.
Minyanville Executive Editor Kevin Depew explores the recent settlements involving Citigroup (C) and Auction Rate Securities (ARS) markets, scoffing at the notion that corporate America's interests should be balanced against the American investor's. Companies that misled shareholders should face the music and pay the piper.
Kevin looks at the S&P 500 making higher lows since July 15th and notes that, for now, the rally remains intact. However, this is simply a rally within the context of a larger bear market.
Kevin Depew is the Executive Editor of Minyanville.com. Prior to joining Minyanville, Kevin spent more than five years as an analyst with Dorsey, Wright & Associates where he contributed to and edited the firm's daily research. Kevin welcomes your comments and/or feedback at kdepew@minyanville.com.
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