Posted on 09/03/2009 10:06:14 PM PDT by The Magical Mischief Tour
http://www.youtube.com/watch?v=wdFzVtQb1YA
Watch the video and comment on what this guy is saying.
I’ll “weight in.” What you have here is a ton of crap.
Bad Freeper manners. You should not tease with no information like that. Write a few sentences at least regarding what the topic is, if you are going to post a vanity.
Agreed. This is bad form.
I’m not clicking on anything just because somebody says to.
The content of the video is not crap at all.
Is this the web equivalent of “here, smell this?”
Ah... the ‘joys’ of the fractional reserve banking system. (/sarcasm)
I am getting tired of these kinds of messsages - “watch the video.” I think a lot of this stuff is spam to build traffic for their blog, youtube video or their web site. I am seeing more posts like this.
Oh good grief folks all I want is an honest assessment on the info the guy is laying out in the video, not asking ya’ll to go and poke around in my underwear drawer...
Yup. A lot of people are saying the same thing including Schiff, Shilling, Dent, Leeb and others.
Things will not improve unless you have a GOP landslide in 2010.
That’s Karl Denninger. I like and believe him.
He’s actually pulling a typical liberal lie by starting with a few specific truths, and implying those specific truths apply to a wide varieties of targets.
Several large institutions are well-funded. It’s not just Citi, AIG, IndyMac, GE Capital, BofA. US Bancorp is an example of a solid bank (@ current commercial real estate values). If you want to focus on off-balance sheet shell games, look at the government that puts Social Security, wars in Iraq, and Fannie Mae bailouts OFF BALANCE SHEET! The US debt will grow not $1.6T this year but rather $2.6-2.8T after off balance sheet expenditures.
Otherwise, he’s got great points on Kneale that also apply to “Cash 4 Kudlow”.
A GOP landslide will do nothing to improve the situation. This mess is bipartisan.
Just watched it and I have the opinion that he is right. I sometimes wonder if the financial industry is just picking the last of the fruit before the freeze comes. They end up with all the fruit and we end up with a handfull of air.
I would agree. I believe him to be an honest, highly intelligent individual. I particularly enjoyed how he brought out the facts about General Electric.
http://yidwithlid.blogspot.com/2009/08/general-electrics-investments-in.html
I saw it earlier on the ticker it has a companion video of kneale at the site.
http://market-ticker.denninger.net/archives/1406-Kneale-Abuse.html
Yeah. I smell Amway.
The video is spot on.
I’d say he has a point, but also doesn’t.
First, Mark to market isn’t exactly accurate, nor is “calculated value”. Let’s imagine I own a machine that produces metal stampings. It can produce 7 million gadgets before it wears out. Is it worth something? yeah. Is it’s worth defined by what I can sell it for in 5 days? Or is its worth defined by how many gadgets I make and sell? The answer: Are you in the making gadgets business, or in the machinery sales business?
Just because nobody in my local town is willing to buy it for more than $1500, doesn’t mean that it’s not worth the $825,000 it cost to buy it. It doesn’t mean it is worth that much, either. So, being a purist on “mark to market” is foolish, just as pretending to just assign value to something. A bundle of mortgages HAS VALUE. And it’s not necessarily what the market will pay at the moment. It’s what is the ultimate result of time and the underlying assets. So, even if a bank can’t just liquidate it’s mortgage holdings for 20% of face value, it doesn’t mean they’re worth nothing. If they continue to hold them, they have a real asset backing them, and not all will be foreclosed and sold at possible losses.
Again, what’s going to ultimately work, is when someone finally decides to bring clarity and transparency to accounting. This will involve beating the lawyers senseless and pushing the politicians out of the way.
I predict it WILL happen, but not under this administration or congress.
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