[TigerLikesRooster]

Ping!

[PGalt]

I mean, is Timmy Geithner going to stress test them too?

I just saved a bunch of money on my con-game by switching to Geithner.

[dennisw]

FROM JAMES SINCLAIR WEBSITE-—>>>

Dear CIGAs,

Alf’s target on gold will be reached when the markets are stunned to find out that there is no safe haven in the US dollar.

Prior to that, gold in under the magnet may reach $1224 on the simple panic now building in markets as participants recognize there is NO practical solution to the enormous disruption that OTC derivatives manufacturers, distributors and Hedgies have caused.

The BIS (Bank for International Settlement) publicly altered the manner by which they determine the total nominal value of derivatives outstanding. This has actually backfired badly now that it is assumed every entity is lying. The BIS was all that was left for somewhat legitimate economic statistics.

You probably noticed the amount of outstanding OTC derivative nominal value dropped 80% from the BIS figure of one quadrillion one thousand and one hundred forty four trillion dollars as the BIS moved to the computer modeling of value to maturity, another foolishly glib cartoon.

[the invisib1e hand]

Someday maybe I'll dig up (or re-run) some scenarios I ran on how leverage can, in the event of a single, not-unreasonable loss event, wipe out so much equity that cascading bankruptcies are inevitable.

Well, I mean, the graph that comes with it is pretty bracing. But on the other hand, the reality is proving to be even more bracing!

If there's one thing the business world has elevated to a 12th degree art in the past 20 years, it's the maximization of leverage. And lo....the loss event has come.

Geronimooooooooooooooooooooooooooooooooooo!

[Raster Man]

Citi is run by a bunch of idiots. Pandit is in way over his head.

[curiosity]

It's high time the FDIC WaMu'd these jokers.

Our banks are insolvant. We might as well acknowledge that and get the restructuring over with. The sooner the better.

Anything less is only going to delay the inevitable, and our banking system isn't going to function properly until it is restructured.

But that means shareholders need to get wiped out, and bondholders and other non-depositor creditors are going to take a big hit. So be it. The markets need to learn that non-insured financial institution debt is not risk-free.

One of the causes of this crisis is that too many investors got that impression.

Bottom line:

Non-depositor bank creditors must take a haircut, even be wiped out if necessary! Any bailout is a wealth transfer from taxpayers to bank creditors.