Posted today on Market-Ticker by Karl Denninger:
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I believe the alarm has now rung. The market calls all bluffs and that’s exactly what it’s doing right here, right now, today. The lies have been overwhelmed by the functional facts – that you cannot make payroll or pay the light bill with imaginary money – you need real money, and there isn’t any. The time has run out on the fraud pulled in 2009 by Kanjorski with his “mark to fantasy” crap game.
We are doing the same thing right here in the United States with Obama’s demands for “more stimulus” with no way to pay for it, games being run by banks suppressing price discovery and hiding losses on mortgages engendered by nine trillion in residential property value loss, the asset-stripping that was performed on the citizens of Jefferson County Alabama and more. Not one damn thing has been done to fix the underlying problems and nobody has gone to jail for these acts.
You cannot solve a debt crisis with more debt any more than you can fix a drunk with a case of whiskey. Continue reading →