That's what they wanted when M2M accounting nonsense was put away back in March...Delay. It won't work, we know that, but when....

they will recover (and have been) through gaming the markets. I do not see a
financial implosion...sorry. The PTB has this game wired as long as traders
are willing to put up with the blatant corruption and manipulation of equity
and currency markets.

"they will recover (and have been) through gaming the markets. I do not see a
financial implosion...sorry."

a part of me agrees with this, and its sad. basically the bankers have won... we on the sidelines stare stupefied (or likely most are too busy worrying about paycheck to paycheck on there bills).

btw a longtime lurker.... love this forum! first post.

Allclear makes a good point BUT I don't think we will get away unscathed - maybe more like the Japan of the 90's....it appears that major changes in Japan are just now coming to fruition.....maybe we will see more like a full decade of stagnation for the next 10 years until ALL these toxic assets have been fully diluted.....?

http://market-ticker.denninger.net/archi....

On bloomberg.com

Abu Dhabi Fund Seeks to End Citigroup Share Purchase sues for 4.5 Billion

http://www.bloomberg.com/apps/news?pid=2....

"Dead Ahead" ---There are those words again---Someone in a crows nest said that about an iceberg many many years ago...Everyone remembers what came next.

Allclear, if they do recover, it will be by gaming the markets and the country. The bailouts will never end: they'll suck the taxpayers dry before they go under.

Personally, I don't think they can. One unexpected event in a jittery market could send everybody to the exits and once... boom.

its been dead ahead for two years, while I agree with the basic premise and certainly the math I dont subscribe to the timing. I also do not subscribe to the "they hit zero so it's over" school of thought. Since when does a negative number stop these folks?

The basic reality is that no matter what happens, they will not have the moment when they realize they lost and will simply pack up their bags and go home. It just doesn't work like that. I look at historical examples in history to make my assertions - and in recorded history economic collapse in one part of the world or another - many times simultaneously - has led to different outcomes. The thing that all of them have in common is that things do recover, and life moves on. Usually with the same people in charge doing the same practices.

Predicting nuclear bomb avatars at every turn continues to discredit the fine work being done here. It has been my opinion for quite some time and one I am not likely to change.

So does this mean that a continued dollar rally is dead?

Karl..

Is this extension to adhere to the Basel II rules due to the US requiring banks to bring the SIV's and OFF BALANCE SHEET crap onto thier books? They know what this will do to thier balance sheets. If this is what happens when banks are required to tell the truth...what would happen when if they were required to stop lying? What would they do....if they brought back M2M???

HELOCs worthless? No problem mon, just borrow from Timmy & Ben to cover the shortfalls, then change the rule to hide them. It worked for subprime, so why can't they do it all over again with the option-ARM and HELOC problems? As stated above, who cares about negative equity anymore?

Has IT ever been more than just a "photoshop" job?

http://www.2dayblog.com/2007/05/23/the-p.... To start the vid - there is a rectangle box to click.

Welcome Gogolpoe,
Chicago eh? I can certainly understand your pessimism. I agree with your observation that the average citizen suffers from fatique just trying to survive day to day. Are we a broken people? Some of us are still fighting back. Hang in there.

Its not a matter of "fighting back" its a matter of preserving what you have. Too many unknown variables on top of the known, and not enough jugglers. We passed the event horizon a long time ago. (Of course I am also a Shadowstats fan).

Looking forward to Karl's year-end review and next year's predictions, and whether KD concurs with Williams' assessment of an increased risk for collapse next year.

Thanks KD!

i keep on hearing the "intelligent" jackasses on the radio talk about the "contracts" that the bank workers have that would be violated if they had their bonuses restricted/eliminated. but they fail to look at the fact that the "profits" on which the bonus is based are all fraud
the idiocy goes on and on

It was Basel II with its reserving requirements based on credit ratings that launched the securitization game.

Quote:

Predicting nuclear bomb avatars at every turn continues to discredit the fine work being done here. It has been my opinion for quite some time and one I am not likely to change.

As long as from day to day the descent into gradual destruction is imperceptible the assurance of ultimate destruction is guaranteed - SQJ.

And in other news:

http://www.time.com/time/specials/packag....

I don't know whether to laugh or cry. The liars have won, and truth is dead.

I don't think this will signal an implosion. The reason we had a collapse in late 2008 was the banks and gov't weren't setup for a massive cover up. Now they are. Who cares if the banks lose all the depositors money. The gov't will just print more and buy their bad debts at 100 cents on the dollar.

I know, it will ruin the USD. It won't if every gov't is doing the same thing.

The biggest problem is there isn't an acceptable way to get the money to the workers. Acceptable to the well connected that is. So any company that tries to make money selling to the general populous will have problems. The real money is coming from the gov't.

For Real? Time Magazine's Person of the Year 2009 is Ben Bernanke?

Jjm - my popcorn just went down the wrong shoot... GAG, cough, choke. People don't look at Jjm's time.com link while eating.

Looks like the bond market may be about to withdraw the can just as Bernanke was about to kick it down the road again.

If I really believed in a vast international conspiracy I'd say they can juggle the books forever. However the financial world and the overlapped political world are made up of groups that have their own interests. Their cooperation is like that of a band of thieves who have joined together to pull a big job.
Sooner or later there will be some big unforeseen event that asks too much sacrifice of the other thieves to contain.

There's a perfectly legal way to stop the bankers.

Stop giving them our deposits. Then they'll have nothing to leverage into new debt.

We are currently like drug addicts (debtors) who are getting our fix from the drug dealers (banks), who are staying in business thanks to the drug lords (bank customers - most of whom are also in debt).

The drug lords are also the drug addicts - while the drug dealers (banks) make off with all of the profits.

If we stop giving them our deposits then many of them will begin to collapse. That would be a great day in America, and around the world.

bagbalm...you might find this interesting

http://cafr1.com/How.html