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Will it All Come Tumbling Down?
Market Ticker ^ | 8/18/09 | Karl Denninger

Posted on 08/18/2009 8:36:06 AM PDT by cowtowney

Edited on 08/18/2009 8:36:39 AM PDT by Admin Moderator. [history]

Aug. 14 (Bloomberg) -- More than 150 publicly traded U.S. lenders own nonperforming loans that equal 5 percent or more of their holdings, a level that former regulators say can wipe out a bank’s equity and threaten its survival.

Ok. Now how about this one?


(Excerpt) Read more at market-ticker.denninger.net ...


TOPICS: Business/Economy; Culture/Society; Government
KEYWORDS: banking; bhoeconomy; credit; debt; denninger; economy; fed; marketticker; ticker
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Fantastic article. Thanks Karl
1 posted on 08/18/2009 8:36:06 AM PDT by cowtowney
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To: cowtowney

per the article:

“The only reason we have any “resemblance” of a functioning credit system at all at the present time is that the government and Fed are pumping upwards of $250 billion dollars a quarter - that is, $1 trillion a year - into the system to subsidize bad credit risks and keep those who have been and are getting screwed by these frauds - so long as they’re other banks and businesses - from having to bear the cost of these acts.

Instead of locking up the bank robbers (who wear a $3,000 suit instead of a kevlar vest and a gun) we are covering their theft with taxpayer money.

Instead of removing the embezzlement from the system and forcing fraud into the open, we are sweeping it under the rug.

Instead of demanding that people do business honestly and punishing those that refuse, we are allowing them $100 million dollar bonuses - after they run the price of your Granny’s Heating Oil up once again.

Tired of it yet?

It appears not. “


2 posted on 08/18/2009 8:41:56 AM PDT by cowtowney
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To: cowtowney
I can't believe all these talking heads repeating

We have bottomed out in the recession. Fools.

3 posted on 08/18/2009 8:42:59 AM PDT by scooby321
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To: cowtowney

Looks like this Bear market rally is losing steam


4 posted on 08/18/2009 8:43:05 AM PDT by Para-Ord.45
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To: cowtowney

http://www.youtube.com/watch?v=qDtViCyzpJw


5 posted on 08/18/2009 8:47:28 AM PDT by Prophet in the wilderness (PSALM .53 : 1 The FOOL hath said in his heart, there is no GOD.)
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To: scooby321

The depression is better than expected. This house of cards is coming down.


6 posted on 08/18/2009 8:48:45 AM PDT by screaminsunshine (!!)
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To: cowtowney

Wait until the bottom drops out of the Commercial RE market...then we’ll have some real fun...if all these jobs are going bye-bye, the offices and buildings they occupied are going to be empty...someone has to pay the mortgage on the properties...the buildings go upside down and where will the second tier investors go?

We are so srewed...we don’t have to worry about drowning, the fall is going to kill us...


7 posted on 08/18/2009 8:49:29 AM PDT by jessduntno (Privatization + Inter-State Sales + Individual Policies + Tort Reform = Healthcare Reform)
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To: Para-Ord.45

Nope - Up! Up! and Away!!!!!!

You can fool All of the people some of the time.


8 posted on 08/18/2009 8:49:53 AM PDT by I am Richard Brandon
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To: cowtowney

I’m confused. When I say this kind of stuff:

“The American people are wising up, but only to a degree. They are refusing to take on new credit (as they should, seeing as they’re being charged not only for their own legitimate level of risk, but also for their next door neighbor who was intentionally given a loan that the bank knew he could not pay) and demanding in some small way that The Bezzle be eradicated.

The people recognize they’re being violated repeatedly by the scam artists on The Beltway and Wall Street, but they’re not quite sure how to stop it. Certainly, hollering at Congress hasn’t done any good. The Fed has refused to enforce consumer protections, as has Treasury, and both have done their damndest to overrule state regulations and even State Attorney Generals whenever possible.

...the government and Fed are pumping upwards of $250 billion dollars a quarter - that is, $1 trillion a year - into the system to subsidize bad credit risks and keep those who have been and are getting screwed by these frauds - so long as they’re other banks and businesses - from having to bear the cost of these acts.

Instead of locking up the bank robbers (who wear a $3,000 suit instead of a kevlar vest and a gun) we are covering their theft with taxpayer money.

Instead of removing the embezzlement from the system and forcing fraud into the open, we are sweeping it under the rug.

Instead of demanding that people do business honestly and punishing those that refuse, we are allowing them $100 million dollar bonuses - after they run the price of your Granny’s Heating Oil up once again. “. . .

I get called a libtard socialist troll?

parsy, who was on to this way back in March 2001


9 posted on 08/18/2009 8:51:04 AM PDT by parsifal ("Where am I? How did I end up in this hospital room? What is my name?" Anonymous)
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To: parsifal

was there a question there somewhere?


10 posted on 08/18/2009 9:14:44 AM PDT by cowtowney
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To: cowtowney

11 posted on 08/18/2009 9:25:30 AM PDT by PureSolace (Trust in God)
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To: All

If the system is inevitably going to collapse then it needs to happen while the MSM is towing the liberal/WH line that all is ok. Just so the fools who voted for these idiots can learn a hard cold lesson, then maybe next time they’ll listen to voices of reason.


12 posted on 08/18/2009 9:31:47 AM PDT by The Magical Mischief Tour
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To: cowtowney

I like Karl Denninger a lot. He calls “bull” on a lot of stuff and explains why.

Having said that he is deeply pessimistic, beyond even other ‘perma-bulls’ like Peter Schiff and Noriel Roubini.

He could turn out to be right, but I suspect he is way too doom-and-gloomish.

I remember a discussion with my Dad (now deceased) about the Y2K projections. His comment was “it’s not going to be that bad”. (I was not sure myself, and I worked in the software industry. My company found some pretty bad bugs in our super-widely-deployed system software.)

My Dad’s take was “there are a ton of really smart people working to make sure it doesn’t happen, all over the place”.

He turned out to be right about that. I think a similar rule applies to the ‘total financial meltdown’ scenarios. It’s not in anyone’s best interest. Lots of people are working to prevent it. They may not be 100% effective, but even if they are 90% effective they will prevent the big blow out.


13 posted on 08/18/2009 9:56:20 AM PDT by Jack Black
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To: Jack Black

“I think a similar rule applies to the ‘total financial meltdown’ scenarios. It’s not in anyone’s best interest. Lots of people are working to prevent it. They may not be 100% effective, but even if they are 90% effective they will prevent the big blow out.”

Hardly the same thing...the horse has already died...making a new saddle won’t get you a ride...


14 posted on 08/18/2009 10:29:07 AM PDT by jessduntno (Privatization + Inter-State Sales + Individual Policies + Tort Reform = Healthcare Reform)
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To: cowtowney

Kinda sorta. I like what he said and think it should be obvious. It just seems that whenever I jump on Wall Street, the anarcho-capitalists come out of the wood work and say hurtful things unto me.

parsy, who thinks if he changed his name. . . .


15 posted on 08/18/2009 10:33:17 AM PDT by parsifal ("Where am I? How did I end up in this hospital room? What is my name?" Anonymous)
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To: Jack Black
There are a ton of really dumb people out there that either don't care or are working to make it happen so that the USA becomes a socxialist country.

I'm not so sure the smart people can counter this.

16 posted on 08/18/2009 10:39:32 AM PDT by Just another Joe (Warning: FReeping can be addictive and helpful to your mental health)
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To: Jack Black

Your dad had a good perspective. What I think is different here is the number of bubbles yet to pop-—comm real estate, credit, mortgages II, while unemployment is grim for forseeable future.

As a consumer economy,I don’t see where demand is going to come from for all the “fripperies” we tend to buy. Plus, the deficit is a whole big bunch bigger than anyone likes to talk about.

Our GDP is about 14 trillion per year. Our deficit is at least that much BEFORE considering unfunded socsec and medicare, whoich could push the total to around 100 trillion.

Even if half that amount, 50trillion, there are outlays of about 4-5 years of 100%GDP. If we bite the bullet and pay off at 25%GDP in taxes, that equates to at least 16 years to 20 years of super high taxes.

For the first time in my 50+ years, I see gloom and doom coming in a big way.

parsy, who is normally fairly optimistic


17 posted on 08/18/2009 10:42:38 AM PDT by parsifal ("Where am I? How did I end up in this hospital room? What is my name?" Anonymous)
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To: Jack Black

FWIW, here is a link to taxes as a % of GDP. The 2 charts are at the bottom of the page. And,if the real outlays are in the 100 trillion range, its even worse.

parsy, the glum


18 posted on 08/18/2009 10:48:00 AM PDT by parsifal ("Where am I? How did I end up in this hospital room? What is my name?" Anonymous)
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To: Jack Black

Comparing this situation to Y2K is ludicrous.

I’m not even going to waste my time explaining why.

For crying out loud, you’ve got Wall Street Banksters TRYING to screw the public and SUCCEEDING. Trillions of dollars.

This is not a potential problem. It’s happening NOW.


19 posted on 08/18/2009 10:51:48 AM PDT by cowtowney
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To: cowtowney

Folks - We are getting ripped off by DC and Wall Street and we are not doing anything.

It can’t be any clearer.


20 posted on 08/18/2009 10:56:01 AM PDT by cowtowney
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