[drgoodword]

$this->bbcode_second_pass_quote('TheDude', 'Y')eah, right. Protest against what? Ignore that iceberg? Steer hard to starboard? Man lifeboats now? We're not even passengers in steerage on this ship, not even mice. More like cockroaches! J6P isn't going to have a light bulb moment reading Ticker Forum, fer Christsakes. J6P can barely read the instructions on a TV dinner, that's why he's J6P.

[wisconsin_cur]

I think I'm looking forward to hearing my children tell their children,

"If you aren't quiet George Bush will come and get you! Now go to sleep."

[jasonraymondson]

You are all being doomers, now shut up, everything is going to be okay... the future is wonderful, the free market will save us all.


John Denver isn't around, so there you go. My gift to you.

[AlexdeLarge]

$this->bbcode_second_pass_quote('wisconsin_cur', 'I') think I'm looking forward to hearing my children tell their children,

"If you aren't quiet George Bush will come and get you! Now go to sleep."

[wisconsin_cur]

$this->bbcode_second_pass_quote('AlexdeLarge', '')$this->bbcode_second_pass_quote('wisconsin_cur', 'I') think I'm looking forward to hearing my children tell their children,

"If you aren't quiet George Bush will come and get you! Now go to sleep."

[efarmer]

As uncomfortable as it is for everyone, we are moving off
of the insanity of being on autopilot in denial. Myself, I
am concentrating on being pleasant to everyone around
even if I don't feel that way, and loving to my inner circle.

I have a stupid smile glued on my face and I am waving
at everyone all the time, who knows, I may run for President.

[AlexdeLarge]

$this->bbcode_second_pass_quote('wisconsin_cur', '')$this->bbcode_second_pass_quote('AlexdeLarge', '')$this->bbcode_second_pass_quote('wisconsin_cur', 'I') think I'm looking forward to hearing my children tell their children,

"If you aren't quiet George Bush will come and get you! Now go to sleep."

[hope_full]

This is a funny little aside, but I was at Walmart this morning for a time and normally, the place is pretty busy. This monring, I was almost *alone* in the store (other than the employees). At 8:00 am, I had to wander around for a while to find a CLERK to open a register so that I could check out.

I've never seen such a thing.

[Zardoz]

$this->bbcode_second_pass_quote('hope_full', 'T')his is a funny little aside...

[hope_full]

Well, my point is, a walk through Walmart at 8-9 a.m. in southern Virginia isn't really a well-recognized economic indicator. However, it was a little spooky. The check-out clerk was an older black woman and she said, "I don't know where everyone is this morning. We're usually packed at this time of day. Guess it's all that stuff that's happening in the economy."

Funny - as in STRANGE.

[Roy]

asfdasdf

[archaen]

Denninger Guest KFYI MP3 Karl Denninger of tickerforum fame does a 3 (minus commercials and breaks) hour radio show on KFYI with Terri Gilberg on the crashing economy and gives concrete explanations for the cause of our current problems. He gives a three part plan to force transparency of ledger books, regulate credit default swaps, and bring back the 12:1 margin limits that were removed in 2004.

Best paraphrase of the night was his explanation on CDS: "That's like me buying fire insurance on your house - not only do I not have an interest in taking care of it - I have an interest in seeing it burn down." Karl's plan makes a lot more sense to me then trying to paper over this mess with 4 trillion dollars, having it fail, and then saying more paper is the answer.

I'd like a discussion on what you think of the feasibility of his plan compared to what the people in charge are doing right now, and if it agreed that this makes sense, any other things that should be added.

I would be especially gratified if Mr. Bill could drop by and give his opinion.

[TheDude]

I think this was ported onto YouTube already, or Karl uses that fire insurance analogy a lot.

[archaen]

I havent come across him except for the last couple of days and I am working my way through his videos and blog over at ticker. His plan resonated so well with my current thinking on what was going on I just felt I should share it. If there is a pre existing thread on this then please feel free to merge. I looked with the search function but didnt find anything that stuck out to me as being about this specific interview.

[virgincrude]

Bejeezus this is scary stuff ......
Market Ticker Forums
$this->bbcode_second_pass_quote('', 'C')ongress, please listen:
The Truth is that we now require about $5 of debt to generate $1 of GDP.

The Truth is that the reason you were not asked to approve $700 billion to capitalize 10 new banks, thereby creating seven trillion in lending capacity is that the economy cannot soak up that new lending capacity; each dollar of new debt generates almost no aggregate GDP. If this were not true then that would be the logical and effective cure for the 'credit crunch" - if the borrowing capacity and impact on GDP necessary to help existed. They do not.

The Truth is that you were lied to about the purpose of the TARP/EESA, because what you were sold was mathematically impossible. It is supposed to be unlawful to lie to Congress.

The Truth is that the purpose of the EESA/TARP is to rescue the bankers on Wall Street and elsewhere who have made imprudent loans, all of whom are aware of the declining value of a dollar of debt in the economy - a fact they have intentionally concealed from you. The bankers (including Hank and Ben) all know how to do this math, and they are well-aware that the best they can do at this point is to "Rob every dollar you can while the getting is good, and hope they don't figure it out before you get the cash."

The Truth is that once you reach a level where a dollar in debt will not support a dollar in GDP you must inevitably either pay down or default that excess debt. Unfortunately, in this case we must pay down or default approximately 80% of the aggregate public and private debt in the United States in order to return to a standard were $1 in debt will generate $1 in GDP. Defaulting or paying down less will "turn the clock back" to a degree, but does not change the ultimate outcome. Only returning to $1 of debt returning $1 or more of GDP, and holding the total level of debt outstanding at or below that level, results in a stable monetary system.
The Truth is that if we reach the point where a dollar of debt has a NEGATIVE impact on GDP The United States monetary system and government will implode. The reason for this is mathematically obvious - each additional dollar of borrowing beyond that point actually contracts GDP instead of growing it; this is, for all intents and purposes, a "black hole". It is that event that has led to the implosion of other monetary systems such as the hyperinflationary implosion of Argentina.

[dohboi]

"The Truth is that the purpose of the EESA/TARP is to rescue the bankers on Wall Street and elsewhere who have made imprudent loans, all of whom are aware of the declining value of a dollar of debt in the economy - a fact they have intentionally concealed from you. The bankers (including Hank and Ben) all know how to do this math, and they are well-aware that the best they can do at this point is to "Rob every dollar you can while the getting is good, and hope they don't figure it out before you get the cash." "
Well put, but pretty much the conclusion that most on this forum came to as soon as we read the original Paulson plan.

We are spiraling into an economic black hole, and soon we'll reach a velocity where we are unrecognizable to ourselves. (Or perhaps we have already passed that horizon?)

[pedalling_faster]

good article but i think i will wait 6 months to be concerned about it. it will take me a while to understand what he his talking about. it sounds like Karl D. has had time to think about it & knows what he's talking about.

[Jotapay]

$this->bbcode_second_pass_quote('pedalling_faster', 'g')ood article but i think i will wait 6 months to be concerned about it. it will take me a while to understand what he his talking about. it sounds like Karl D. has had time to think about it & knows what he's talking about.