What does Wiesel mean when he explained that “the Ghetto was ruled by neither German nor Jew; it was ruled by delusion”?

Wiesel is talking about the fact that although the Jews were forced to relocate, the people dealt with what they were handed. The Germans didn't have to rule, as the Jew had been isolated. The Jews, on the other hand, busied themselves into believing they had some kind of power over their own lives.... but in essence, they were dreaming. They held no control whatsoever over their own fate.