In the good old days of accrual accounting balance sheets were signed off as showing "true and fair value" and there was an actual number for contingent liabilities. Today "mark to market" has become "mark to unicorn"… Back in a somewhat more realistic world, if a company (even, heaven forbid, a bank!) was insolvent it went bust thereby giving a salutary reminder to investors, depositors and creditors of the maxim of caveat emptor. By creeping paralysis that principal too has been abandoned by governments and regulators who believe they are better equipped to save us from our own mistakes. The consequence (unintended or otherwise) of which is to compound the error.

David Fuller's view I commend the rest of Clive Hale's latest note to you. It is one of his best, in my opinion.