FAIL: One word for them all....By Karl Denninger

Don't think this has been posted before, Well its dated today.


The Market Ticker

I'll let you read then discuss.

Holy crap . . . if'n that doesn't scare the proverbial 'liquidity' out of you . . .

I strongly suggest this poster's link . . . here's a tidbit . . .

I put the odds of the plates falling within the next two months - and possibly within the next couple of weeks - at one chance in three.

If the plates fall we are going to have a very serious "event" in this country in the markets and in the economy - much worse than what we've seen to date. As in 10 million jobs lost almost all at once. A depression. And a new leg down in the market - 30-50% - essentially straight down.

As I said, I only give the odds of this event here and now at one in three - but if Ben and Hank have been playing games, that outcome has become inevitable - we are arguing about timing, not result.

I've been reading MArket Ticker since the bubble burst and I've been reading other sites and blogs about how the economy is going to crash and how the SHTF ad naseum .....

What I'm beginning to believe is thaat this country and it's people are very resilient and with a new that administration we just may make it out of this mess. I know it is somewhat contridictory of what I have said in other threads but its what I've been thinking today

reply to post by venividivici


.... Please don't tell me you actually believe Obama is .. what's the term? .. Oh ya.. "For change?"

DO YOU EVEN REALIZE WHO HIS ECONOMIC ADVISERS ARE?

Presidents DO NOT direct financial policy, their parties do before they do, Lobbyist do before they do, and above all else, The FED and Treasury, which act out side of Executive regulation, make economic policies.

The President get's to veto...... sometimes.. most of the time everything operates outside of the Presidents direct influence.

Obama, like Bush... is a tool.

reply to post by GoalPoster


Thank you for posting an insert i don't know how to do that.

And your first sentence was pretty similar to my reaction too, Although i may have used a few swear words.

Its looking pretty serious but i somehow get a feeling things need to happen to make people wake up and take steps to put a stop to these people.

Otherwise this world may not be a very nice place for our children.

Obama will crush the economy. He will tax the job creators and fast-path the nationalization of industry sectors not able to support itself. He will bailout the weak who fail first and let the strong who last longer fail later. We're back to a welfare society, but this time it's not just weak members of society chunks of our paychecks are supporting, it's weak industry sectors. Sum up the bailout packages and divide by us taxpayers, how much are they putting each of us in debt?

The major thrust of most commentary on the matter is that there is no time. The time to address the issue has long-since expired.

The current activities of the FED and large-cap and blue-chip firms are just slowing the descent so when we hit rock-bottom it goes from a probable death-inducing impact to something along the lines of severe trauma.

Time to start moving that fiat currency into hard assets, boys and girls. Worst case scenario: if by some miracle we dodge the bullet you can always re-invest.

Karl is amazingly insightful. His Ticker is daily reading for me, and it should be as well for anyone interested in what's happening with the economy.

Relentless has been working on getting an interview with him - everyone should pop in with some questions!

There's a lot of info in today's Ticker (direct link to it is right here). Particularly important bits to note are:

We have discovered that Treasury, on its own initiative, changed tax policy in a fashion that will cost taxpayers another $150 billion, this beyond the TARP as well, without Congressional approval - this time as an "incentive" for banks buying up other banks.

Meaning this incredibly under the radar bit of news,

and this:

Well Bloomberg (among many others, myself included) would like to try to figure it out, but The Fed doesn't seem to want to disclose what it has taken in, from whom, and how it valued those alleged assets.

Why not Ben?

Are you afraid that you might wind up disclosing that you in fact have been printing money, after you told Congress there was no inflationary impact of your actions, and that such a disclosure might not only result in a contempt citation from Congress (or worse) but might also trigger mass capital flight by foreign governments and investors who suddenly come to realize that you've screwed them?

The more dollars we print (and make obvious we're printing) to spray on the burning banks, the less foreign governments will want to invest in US Bonds, Treasuries and the like. Foreign investors buy bonds from America as investment vehicles; it gives us money to put in the coffers (or to throw at bankrupt financial institutions), and they make a modest return when the terms of the bond are up. Why would they invest in an ever-weakening currency?

Originally posted by Dbriefed
Obama will crush the economy.

Our economy is long crushed, my friend. It's been in Weekend at Bernie's mode for at least 8 years.

[edit on 11/11/2008 by anachryon]

Great post and this guy is great. Ive never heard of him myself but Ill be listening now. I just listen to Peter Schiff really but Ill add this guy to my list. Flag for you.

reply to post by anachryon


I get what you're saying, but it was 4 years before the next sequal came out. Maybe some dub-reggae could resurrect the economy for the time being, just like it did for Bernie...

www.youtube.com...

I love KD! So, this is fresh doom? The freshest available? A couple of months maximum?