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Old 08-12-2009, 03:21 AM   #1
peaceandlove
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Default Banking and Credit: It Is NOT Over ~ Karl Denninger 8/11/2009

Banking and Credit: It Is NOT Over

Tuesday, August 11. 2009
Posted by Karl Denninger

Gee, more truth-telling this morning! http://finance.yahoo.com/news/Watchd...&asset=&ccode=
In its latest assessment of the $700 billion financial system bailout, the Congressional Oversight Panel warns that banks still hold many risky loans of uncertain value. If unemployment rises sharply or the commercial real estate market collapses -- as many economists fear -- the banking system could again lose its footing, the panel says in a report to be released Tuesday.
"Uncertain value"?

Oh do come on.

Let's look at the actual information that the COP put out, minus the usual media spin job: http://cop.senate.gov/press/releases...9-troubled.cfm
The Panel's report raises several questions about the program, including whether accounting rules that allow banks to carry assets at higher valuations will diminish their willingness to sell.
English: We still have banks that are engaged in what amounts to accounting fraud when looked at through any sort of objective lens, but its all "ok" because we have "accounting rules" that say you can claim something is worth more than it really is.
For smaller banks, those not among the 19 stress tested bank holding companies, troubled assets pose special challenges that have not been acknowledged. These banks' troubled assets are generally whole loans, which are not currently being addressed by Treasury's PPIP program. These banks also hold greater concentrations of commercial real estate loans, which pose a threat of high defaults.
English: Intentionally-overstated valuations on paper is more important when you're smaller and have more concentration of trash, especially when that concentration is in the sector where almost no recognition of true value (commercial real estate) has yet taken place. Bluntly: These banks are screwed (Guaranty, Corus and Colonial are just a few examples.)
Treasury and relevant government agencies should move toward greater disclosure of the terms and volume of troubled assets on banks' balance sheets. Because banks typically disclose few details about the toxic assets on their books, it is difficult to gauge the magnitude of the risk that these assets pose to the financial system.
English: Treasury, including the OTS and OCC, are willfully and intentionally allowing banks to issue overly-rosy statements and valuations, and are permitting the hiding of losses. Oh, The Fed is too - let's not forget them.

Continues: http://market-ticker.denninger.net/a...-NOT-Over.html
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Old 08-12-2009, 03:51 AM   #2
Northern Boy
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Default Re: Banking and Credit: It Is NOT Over ~ Karl Denninger 8/11/2009

450 TRILLION In derivatives and when they come crashing down its going to be messy . Grab your bonus`s now boys and look for some where to live off shore . You may very well be on the MOST HUNTED list
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Old 08-12-2009, 04:47 AM   #3
Tango
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Default Re: Banking and Credit: It Is NOT Over ~ Karl Denninger 8/11/2009

Another good one PaL... Speaking of the commercial R E Market. It will
crash... It has to...

The good news; I see people being able move in to these malls, to get out
of the weather as the tempetures cool. Now we need to find a way to feed
them... Help them. Families are going to have to pull together.

Yeah, Its going to be tough. Its a good time to be alive.

Once again this is how George Soros works... Do a search on him...

At least than you'll know what's coming. What he has done in the past.

Get ready to FEED someone... And, Step Up... Hope your building a pantry.

Trooly,


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Old 08-12-2009, 06:19 AM   #4
Northern Boy
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Default Re: Banking and Credit: It Is NOT Over ~ Karl Denninger 8/11/2009

Tango Yahoo reported today that many commercial real estate loans are already defaulting Mall and Hotels as well there are so many commercial Real estate loans about to come due in the next 6 to 8 months that it will be an economic like watching domino`s fall . People who are unaware are going to be shocked into reality in a hurry . It has to happen so bring it on and lets get it over with . I think we are going to have a harsh cold winter in the northern U.S. and Canada this year. this is good for people who unfortunately lose their homes if they can hang on until the winter hits they will be ok till spring .In Canada you cannot evict families during the winter months when they have children I hope in the States it is similar.

Been building up my pantry for awhile `and am already stepping up and helping out in my neighborhood . If most people were smart they would form neighborhood groups pool all the food and it could stretch even further . I am sure there would be no leftovers and picky eaters would have a big change in what they eat or they wouldn`t eat

Last edited by Northern Boy; 08-12-2009 at 06:24 AM.
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Old 08-12-2009, 06:31 AM   #5
bushycat
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Default Re: Banking and Credit: It Is NOT Over ~ Karl Denninger 8/11/2009

Get ready to FEED someone... And, Step Up... Hope your building a pantry.

Trooly,


Tango[/QUOTE]

Yes, Tango, if we can, we need to feed a stranger or someone close. Some in my flock shrug their shoulders when they see my stash of goods. I smile inside and think "but it's for you..."
Aloha, Bushycat
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Old 08-12-2009, 07:35 AM   #6
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Default Re: Banking and Credit: It Is NOT Over ~ Karl Denninger 8/11/2009

On some levels, I think the ones living in the most turbulent countries what comes to economy, are luckier than say myself that live in a country that so far have dodged most of the crisis. The mechanics of Norway have always been about international invincibility. Nothing can hurt Norway and it's interests. We were occupied by the Germans and came live and well out of it. We had the black plague killing off 2/3 of our population at the time and still we rose back up as one of the richest nations in the world.

We've been under both Swedish and Danish rule, but we lived on as Norwegians.

The world has been too good to us, the norwegian people are having troubles understanding that we aren't invincible, that we too can get in trouble. NATO has a firm grip on norwegian officials, as our coastline is a crucial entrypoint to Europe. We were lucky to have loads of saved assets to fence off the first wave of the crisis, but all this have made economists and governmental officials get the idea that nothing can happen to us, if you exclude Swineflu that is! :P

Thankfully, we have a few individuals that are trying to wake people up. They might be going about it in the wrong way at the moment, but they are learning. I'm doing what I can with my friends and family, but at the same time making sure not to come forth as pushy and as a know-it-all.

My gut feeling has been telling me what this article states all along. We're in for a bumpy ride me thinks, but I'm welcoming it with open arms. The unfair system has to come to an end and I will do my sincere part when the time comes.

Lucrum
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Old 08-12-2009, 08:18 AM   #7
Tango
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Default Re: Banking and Credit: It Is NOT Over ~ Karl Denninger 8/11/2009

Ya'll make me proud... I love smart people... We all have to build our stores;

Pantry's; Tin's... I fed 3 people today, I'm taking someone for food, supplies,

personal items, tomorrow. Oh, don't forget to purchase female products also

people forget that those items are going to be needed. Canned meats, beans,

seeds, go a long way. Learn how to make water; put kits together to give away

so people can help themselves. When the electric goes down the water

pumps stop. Powered milk is also important. Good quality tents; prices

are going to drop sharpely shortly. Something to protect yourself. If you

have food someone's going to want to take it. Thank you in advance for

your planning. Your desire to help others, survive. This is NOT an IF its

a WHEN. Again research Soros. He's done this before...


Tango
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Old 08-12-2009, 12:28 PM   #8
pineal-pilot-in merkabah
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Lightbulb Re: Banking and Credit: It Is NOT Over ~ Karl Denninger 8/11/2009

Quote:
Originally Posted by Northern Boy View Post
450 TRILLION In derivatives and when they come crashing down its going to be messy . Grab your bonus`s now boys and look for some where to live off shore . You may very well be on the MOST HUNTED list
some estimates of the unknown amount of derivatives is anywehere between 1.5 quadrillion and 4 quadrillion dollars.

Some names of large numbers, such as million, billion, and trillion, have real referents in human experience, and are encountered in many contexts. At times, the names of large numbers have been forced into common usage as a result of excessive inflation. The highest numerical value banknote ever printed was a note for 1 sextillion pengő (1021 or 1 milliard bilpengő as printed) printed in Hungary in 1946. In 2009, Zimbabwe printed a 100 trillion (1014) Zimbabwean dollar note, which at the time of printing was only worth about 30 US dollars.

QUADRILLION =

1,000,000,000,000,000 (one thousand million million; 1015; SI prefix peta-) - for all short scale countries - increasingly common meaning in English language usage

that is indeed literally an astronomical amount
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Old 08-12-2009, 04:09 PM   #9
Connecting with Sauce
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Default Re: Banking and Credit: It Is NOT Over ~ Karl Denninger 8/11/2009

Congressional "Oversight" Panel

I like that... Is it overseeing this crisis or will it be an oversight that it was about to happen
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Old 08-18-2009, 02:28 AM   #10
peaceandlove
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Default Re: Banking and Credit: It Is NOT Over ~ Karl Denninger 8/11/2009

A couple good recent Karl Denninger Commentaries:

Treasury, FDIC And More: How Many Lies?

Saturday, August 15. 2009
Posted by Karl Denninger

Oh now Judicial Watch has gone and done it:

Remember that we were told when AIG (and the banks) were bailed out that "the taxpayer is unlikely to lose any money, and may even make a profit." Bernanke said this, Hank Paulson of Treasury said this, indeed, it was the mantra of the administration.

It was also untrue:

Continues: http://market-ticker.denninger.net/a...Many-Lies.html




Sunday Lesson: Why "Normal" WILL NOT Return

Sunday, August 16. 2009
Posted by Karl Denninger

Be warned - this is a long presentation, lasting more than an hour and a half. It is worth every minute of your time and is in fact essential to understanding both what happened and more importantly why the economy cannot recover on a durable basis. (Original Page: http://informationclearinghouse.info/article23243.htm )

VIDEO See Link below

That's William Black, the former liquidation director who was in charge of investigating the S&L disaster.

Note that one single bank, IndyMac, lost more money than all of the S&Ls combined.

Folks, the key "take away" here is what is called "control fraud." In order for trust to be restored - that is, in order for markets to function normally, this fraud must be eradicated from the system so that normal levels of business trust can be restored.

It hasn't been.

Nobody is in the dock right now among the big banks.

The credit and equity markets, along with the economy, are hobbling along only because of the extraordinary actions, costing hundreds of billions of dollars a year, taken by The US Federal Government to "backstop" or "guarantee" economic activity - specifically, lending. Absent those guarantees and backstops that activity WOULD NOT TAKE PLACE because THE BANKS ARE STILL LYING AND KNOW THEIR PEERS ARE AS WELL.

Continues with VIDEO: http://market-ticker.denninger.net/a...OT-Return.html
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Old 08-18-2009, 05:05 AM   #11
Barcarolle
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Default Re: Banking and Credit: It Is NOT Over ~ Karl Denninger 8/11/2009

I have added a rather interesting youtube vid regarding Bernanke answering questions from Rep Alan Grayson

Alan Grayson: "Which Foreigners Got the Fed's $500,000,000,000?" Bernanke: "I Don't Know."

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Old 08-18-2009, 06:49 AM   #12
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Default Re: Banking and Credit: It Is NOT Over ~ Karl Denninger 8/11/2009

xxx

Last edited by THE eXchanger; 09-14-2009 at 05:00 PM.
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Old 08-18-2009, 06:13 PM   #13
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Default Re: Banking and Credit: It Is NOT Over ~ Karl Denninger 8/11/2009

Todays news in norwegian mainstream: Crisis is over, we cleared the gap but we will feel the effects for a while longer...

It's insane how they can post one piece of news saying there is no crisis in the job market, then a few columns beneath reveal that SAS gives the boot to 1500 workers. All in all the very same day our PM declared the job crisis to be over, warnings of about 3500 jobs being cut very soon was shown beneath that initial claim from our leaders...go figure...

And then I haven't yet mentioned the expected fails in various businesses because of lack of orders. So far they been sailing on orders from 2008 and early 2009.

Hey, at least I get some entertainment during the day!
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