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Companies get away with fraud until the economy goes down, and when that tide recedes, you see who has no clothes on, Ed Harrison told Real Vision during today’s Daily Briefing.
Harrison made the remark during a conversation about disgraced German financial services provider Wirecard, which is embroiled in a $2.1 billion scandal. He said the recent fraud revelation is the perfect example of how it works every cycle; when we’re in a bull market all is well, but when the economy weakens, people start to ask questions.
As for Wirecard’s long-term outlook, Harrison thinks