Update for 10/17 Weekly

[doctorofghetto]

With the U.S. Economy going to collapse, our government is going to exercise Martial Law, thanks to the "ompf" from the House Bill: H.R. 645. Tell you local representative about oppsoing HR 645 being passed. I did to Greogory Meeks, 3 times/one with delivery confirmation.

Be Persistant guys

[dave777blaster]

I suggest doing what the people did during the depression that managed to make it through the tunnel batter than most

Buy land plant your fod

[zappos49]

peter schiff cnbc now!!!!!

[Weaseldog2001]

In Argentina they gave away their assets and cash for pennies on the dollar.

It didn't fix anything for them.

[bas058]

Thanks for another lucid video.

It's actually about f---ing time car loans got tougher. When I was a college teacher my jaw dropped regularly when I saw the way they were handing out car loans to college kids. If you have a car you owe 7K on and it is only worth 5K, the financially intelligent thing to do is to keep driving the damned thing. A properly taken care of car worth five k is a perfectly functinonal vehicle to get to work and the store.

I haven't stopped hoarding food yet.

[badonkadonk34]

Another great video. "The credit monster is gonna eat everything it needs to satisfy itself" - fantastic line. love it.

[dave777blaster]

forget stks forget gold and silver they are paths to starvation.

no matter how many dollars you have they will be worth nothing soon.

[spryspy7]

what do you suggest?

[freedomfighterone]

Karl, start stocking up on food supplies now! Don't wait until the last minute hoping for a miracle that is never going to come.

[SWAUVE4U]

watch?v=gZid5L9n3wc

...oct.16,2008

..bUSH EXTENDS NORTH AMERICA UNION PLAN (NAFTA)

[aaronCapricorn]

it's called debt fool! money = debt!

[huskie767]

Can you believe we are on the brink of electing a Marxist Ruler and a liberal supermajority Congress? The next few years or decade(s) are going to be fun. By the way, Chris Dodd and Barney Frank epitomize Congressional leadership. We are truly a Blessed nation.

[DABIGRAGU1]

Thanks bud.

5*

[DHTCAMUS]

Thanks again Mr.Denninger for the no-bullshit breakdown of whats going on. It seems so many people are taking leave of their sanity, closing their minds and telling lies when it's convenient for them.

[AuntyVirus]

Thank you for update.

[JackNeedles]

I've already stocking up my pantry a year ago and anyone who says you shouldn't do it is an idiot. Why? Because even if we do not go into a depression and we come out of this fine( which there is only a 20% chance of right now) there will be without a dubt much higher inflation as we go into a very deep recession. So either way, you should be stocking up on food BEFORE the major inflation hits next year.

[darrincoe]

perhaps this is a way for the neocons to destroy the liberals? they'll saddle the liberals with this trash heap and no one will trust them again. hmmm?

[darrincoe]

one of the questions is who does this benefit. in criminal investigations is to always follow the money. how does this help obama? who does it benefit to have obama in the presidency.

[darrincoe]

some of this is a good thing. consumerism gone rappant is also not a good thing. consumer credit should be abit difficult to acquire.

darrin coe

[barbaglia111]

Thanks Mr. Denninger, for your very astute analysis

[1310monster]

I think they have even faked you out Karl. Love your stuff just don't see how you can pull anything positive out of this week other than a couple days at the end of the week where something looks like it might be upturning. I'm hearing reports of a digital cash bank run late in the day on Friday...

[kdenninger]

The only positive - at all - is that there IS some evidence the short-term credit markets are unlocking - a SMALL AMOUNT.

If that continues, its good. If not....

[mustangjake2073]

I was just laid off from a bank today along with 30% of management. Short term credit is not unlocking. Treasury suits have been all over the banks in the last 2 weeks to buy up community banks. The banks themselves had to look like business as usual while they review the assets... We were a very small community bank that only does business loans. We still have income and they are still trying to take over. All our depositor's money is in danger... They had me sign a silence clause...

[Balogm]

^^^^WOW^^^^

[corvettedude346]

What would be in it for you to sign that silence clause, was your severance pay dependent on you signing?

[mustangjake2073]

Severance pay was the main sticking point. I even told others not to sue the bank for it. The bank itself will mostly likely be gone before any court date arrives.

The treasury is coming after the good banks who didn't do any of these subprimes and credit lines first. They will use the actual depositor money to back wall street. Thanks for voting for the bailout you congress crooks. They signed a death clause for the strong community banks.

[izzyizod]

I love your vid's always look forward to them, thanks!

[forestlight5]

Update is appreciated.

[tle021764]

Thanks so much Mr. Denninger. You do the public a great service. I appreciate your advice!

[kosai19]

Correction, this is a crash. This move was worse than the "crash" of 1929.

[Gilgamesh73]

Inflation and dollar crash is as unavoidable as death.

[VIRUSx17]

major depression is on its way...

[stracinsrt4]

K, What the hell is up with metals crashing(I've got some) and what are your thoughts on future inflation after the banks get to injecting all this liquidity?

[xrrecords]

I told yah they are breaking everyone. If your not an Elite you will be smashed. Get out of the market while you still can. Thats real talk!

[kdenninger]

Don't listen to the idiot goldbugs. You will get smashed. In a deflationary credit collapse (which is what we're in) that's what happens.

[daozenrod]

Take some "Gold" by the pawnshop. If you paid $175 10 years ago, they might give you $40--maybe.

And if you are buying paper that says "Gold" on it, well, there is a lot more paper floating than there is Gold.

Paper Gold is fools gold.

[ltexlaw]

Yes, it is deflationary, but it you see hyperinflation eventually. The economic bailout only prolong the inevitable. The decline is in the beginning stages. You can expect unemployment to rise. The numbers for the holiday retail season will be dismal. Because there is less money to buy goods means a further receeding decline in consumer purchasing power. Americans are broke and can't spend our way out this.

I believe that dollar will collapse. I would invest in foreign markets and oil.

[ltexlaw]

This part of course. Unfortunately precious metals and commodities will be rising in price in the future. What is happen, the US has maxed out its credit everything. Its credit rating is junk bond status. Comex does not reflect the real for the physical item. Those prices won't hold at the current level. I would invest in foreign markets and not the American Markets because there bull markets like in emergening economies.

[wisdomknight777]

nice update Karl, thanks man

[bwelkk]

You know, those beans and rice are starting to sound mighty appealing.

[smhutson]

Karl, what do you see happening to silver in the next 6 months to a year???

Thanks

[kapaka12]

second that question...

Thanks in advance Karl..

[kapaka12]

I mean smhutson's question:

"Karl, what do you see happening to silver in the next 6 months to a year???

Thanks"

[kdenninger]

Silver under $6 and/or Gold under $200 is a screaming buy.

Over that price? Nope. Deflationary credit collapses have a nasty habit of hammering the price of "precious metals."

[nidan206]

what about the inflation everywhere else?

[UcantBeSerious03]

Karl Denninger 2012

[ltexlaw]

I see a dollar crash coming. USD index is overbought. It will continue to downward spiral.

[davincij15]

First it must do a head and shoulders pattern right now it is completing it's head.

Thus we should see a sharp drop then a recovery for a month then the market will take it out and shoot it.

There is a good chance this head my play out for 3 or 4 weeks pounding gold, sliver and oil.

However all bets are off the table if the world central banks go to 0%. Then you can kiss all currencies good by.

[markymarkuss777]

Did You know, that in the complete history of the DOW eight out of ten top peaks occured during the early years of the Great Depression? #3 was the day after the great crash of 1929. Best Days of the Dow (% Gain) 1 15.3% March 15, 1933 2 14.9% October 6, 1931 3 12.3% October 30, 1929 4 11.1% October 13, 2008 5 10.1% October 21, 1987 6 9.5% August 3, 1932 7 9.5% February 11, 1932 8 9.4% November 14, 1929 9 9.4% December 18, 1931 10 9.2% February 13, 1932

[pomnew]

Thanks for keeping us inform, great work.

[DsmB2007]

Just read your blog Karl!!!

Unreal..the actual terrorists who are undermining our American Way..are actually the BANKERS..and their "dealers" are Paulson, Bernake and probably at one time Greenspan!!!

Why isn't everyone up in arms about that???

Unreal..Wake up America!!

[comedyguy21]

i agree with you but like iv always said until alot of people get on the same page about things we wont be able to do a thing we need to come togeather!

[Artorioux]

some ppl think boxing is fighting...

some ppl think MMA is more 'real' than boxing...

some ppl know there is no thing but the REAL thing...and it aint always simply or systematically obvious. Middle path

where did the idea of gorilla fighting coming from...an adaptation of indian and english fighting/war sys...today you need a different more adaptive/updated tact...

the idea of -i got a gun you got a gun -are the relics of a now ignorant civilizations.

wake up...wake up to the Way of Future

[markymarkuss777]

I just read an article in Reuters today that said the banks are borrowing an average of 430 billion dollars PER DAY for the past 2 weeks! This makes the 700 billion dollar bailout plan look like pennies. They've just detonated a nuclear bomb of inflation on America. We'll feel the effects soon enough.

[ghosty426]

Well, according to what Karl said, they just delayed the crash until a later date. What a nice parting gift Bush and his cronyies are leaving. Nonetheless, people should avoid the panic and keep preparing! Don't get too optimistic. This economy has a Dick Chaney heart!

[xrrecords]

What about the bank runs they are still happening big time.

[MzProgressive]

You mean I can actually start eating some of that canned tuna? :)

Although I am certainly no financial expert, my intuition tells me that the finger in the dyke will hold 'til about January 20th. (By then it will have served the purpose of the self-serving.)

Thanks kdenninger - You are a voice of reason crying from the wilderness!

[chrisclub]

Do you really see more 2009 debt with Obama?

McCain said he will cut revenue(taxes) and keep the Iraq war going. I suspect Obama will demand equity from any more bailouts using taxpayer dollars.

I see dramaticly more debt under McCain's continuation of Reagan's "tax-cut and spend" voodoo economics.

[ltexlaw]

Obama is just reckless as McCain. Obama is slumlord. He owns apartment complex that is total shambles called Grove Park in Chicago and needs to be condemned. Both Obama and McCain will leave the country to look like a war zone.

[carlfinkle]

Want to see something really scary check out the Baltic dry index.

As far as the Sp500 goes I would not be surprised to see it do most of the move in the next few sessions, what we have seen so far is distribution and not a panic lots of bottom picking going on here.

Anyone who remembers 1987 will tell you what a real panic looks like, 20% down in one day.

[eyetastesweeter]

Karl good rational stuff, this gold rave(from others) hey we're tripping over the stuff in Australia! US has nearly 1/3 worlds known reserves. Good to see non alarmist, things will improve.Public sector is too big though!! but crash? I think you could be wrong. 11 odd billion people will be fed and watered.

[darkkittycry]

This bailout will possibly push off the worst umtil around Feb '09

[dbztiki]

So your expecting a deflationary period?

[AirelonTrading]

"It has gone ... Ape Nuts" - LOL. EXACTLY. Best wording I could think of ...

Down Payment. Who would have thought eh? Maybe this will bring some benefit. Actual responsibility. You best have good credit, and you have 20% down on what you want to purchase.

"Banks got a sweetheart deal, you got screwed"

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