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Worse, it altered the forms in which assets had to be listed.
However, markets display a herd mentality in which assets (such as sub-prime mortgages) become fashionable.
The firm also devised sophisticated new financing arrangements in which assets were kept off the company's balance sheet.
The recordings help, made as they are in environments in which assets can be electronically enhanced and blemishes minimized.
So falling prices create a spiral in which assets are sold off to repay debts, triggering further price falls and further sales.
The charges say that there were other secret side agreements with LJM2, in which assets were supposedly sold to the investment partnership, resulting in profits to the company.
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But it was another one of the ways in which asset prices came to rule the world, which eventually turned out to be a bad thing".
But bulls can be overenthusiastic too, talking of new eras in which asset prices will reach undreamed-of heights (remember the book "Dow 36,000"?).
But I'd define it as a situation in which asset prices appear to be based on implausible or inconsistent views about the future.
With Fed support for the markets about to weakenWe are transitioning out of an environment in which asset prices tend to move up across the board.This blog has pointed before to the puzzle of how equities, government bonds and gold could all be rising in price at the same time; yesterday, of course, they were all falling together.
But at times when conventional wisdom affirms some form of "new economy" in which asset prices can only go up – and therefore financial institutions should be allowed to borrow a great deal more relative to their shareholder equity — can any regulation be effective?
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com