$700B Bailout Watch Day 9/22

[spernoadversa]

I don't understand why the American government should bailout banks.Isn't it a bank's job to basically deal with money?If they fail at their job,they must not be very good at it right?The government bailing out banks is absolutely ridiculous.

[GrifRulez]

hi anyone want to chat

I NEED SOMEONE TO TALK TO 5S

[lnd3005]

The CDS exchange idea sounds pretty good.

[gvroom]

Wow. What a bunch of ignorant people. Take a look at the bigger world around you people... or you'll deserve what you get.

Sort of like the Bush albatross we are still wearing around our neck.

[dx8675309]

Become a CEO, do a rotten job, cut workers pay, lay them off, kill their 401K, rape their pention and then take off with all the money. They have been doing it for years, go figure this would happen.

[ohmannhey]

Test

[MillionthUsername]

They don't even tell you what they want to do or why. It's insane! What I saw of the hearings, they were speaking in generalities. It seems the primary goal is to preserve these companies. If Treasury is going to sell the assets, why can't the company sell the assets? They claim the failed firms won't go for it if the prices are too low - so where the hell is the emergency if they're rejecting buy offers? They just want us to float their junk for them and stay in business, that's all. Forget it!

[daozenrod]

If we can muster 700 billion, we can replace these NYC and Chicago crackheads like a bad habit. Let them die of their self inflicted wounds. Fire these thieves, revoke their charters, ban their workers for life.

Go directly to solving the problem, which is credit crunch, by funding a state owned bank, such as Ginnie Mae--complete with a rational set of regs.  Defang the FED. That is the super pareto move.

Rule: If you refuse to act right, care for your kids, the state must do it.

[TauCeti7]

No BailOut! No BailOut for the financial Elite. We have been ripped off our own resources, jobs and taxes. WE HAVE PLENTY of natural resources in our country OIL, TECHNOLOGY, AGRICULTURE to give Americans the money and jobs WE NEED. The Financial Elite is worried about keeping their POSH living styles. NO BAILOUT!! Stand Up and demand JUSTICE.

[JP5466]

Karl, I've been really PISSED about what Paulson and the FED have been trying to do, but I felt vidicated when I saw you on MSNBC. Thank you for all your vids. You are a true patriot!

[therealcaptobvious]

I'VE GOT PAULSON'S BAILOUT!!! IF YOU SELL 7 MILLION SLOT MACHINES TO CHINA, OR ASIA AT $10,000 EACH...THEN YOU WILL COVER THE $700 BILLION TRADE DEFICIT. That $700 billion will take care of these screwy lenders who ran themselves into the dirt. Heck, AIG and Lehman can give ARM loans to the Chinese to gamble with! If the taxpayers can't pay their mortgages, they can't afford to bail the banks out. Tell Paulson to look elsewhere for that kind of money.

[DsmB2007]

I Subbed to you..I'm impressed and thankful that you are an American!!

all the best..

daniel =)

[wizardeal]

How's the design and build business in Boston these days? I'm sinking fast over here, my business isn't getting calls and I'm falling in deep debt for the first time in my life

[DsmB2007]

Hey Tim,I feel for you my friend.

It's weird I've got some jobs right now, but it's really strange!

It's almost like people are trying to get projects completed before their Home Equity Loans get shut down.After that,they prob, don't care. Families are banding together. Our family is very close and we're always helping someone out doing work on Saturdays,etc My uncles are hunters so if we really needed to eat.I'm sure that won't be a problem. LOLWC(laughing out loud with cynicism)

daniel

[wizardeal]

I'll never let it get that bad. I've never put a second of any kind on any of my properties, but I'm concerned that my rentals won't produce cash flow this winter with commodities going up, which will put my tenants in a position to choose either pay NICOR or pay me. (oh, and if it gets THAT bad, I can hunt, grow and cook, I'm good.)

[DsmB2007]

Good To hear my friend...

Good to hear!!

All the best..daniel

[wizardeal]

Thank you and I wish you all the best as well my good friend!

[beancube2008]

Money psychology would be your catch they predicted. Bailout or not they already schemed. Why you still have to live the new century with the old tools your so called puritan carried from wars over the oceans? Make sure your productivity are on people, not institutes where endless regulations won't solve everybody's problem. They created more since you started going to their preaching schools. You should go there to learn your stuffs, not their mess.

[XeloEspada]

Just saw you on NBC Nightly news. Been watching your videos for awhile. Good that they gave you some air time.

[Sepero1]

Call congress?

I can only conclude that you are still under the illusion that the American people run this country.

Secession- the only solution.

[yaboyy07]

just saw you on NBC nightly news with brian williams....way to go

[psxwarrior]

I'm beginning to wonder if their's any point to even trying to change things. People like this gentlemen and Ron Paul have been trying for years. Hasn't happened yet. Maybe we do need a civil war.

[daozenrod]

Statute of Frauds and Perjuries (1677)

The title comes from the so-called "bad act" that the law proposes to prevent - the perpetration of fraud. 

Applies to "MYLEGS:"

marriage, year, land, executor, goods, surety.

Karl mentioned using it as the direct means of unwinding this tangled web of lies and defusing the bomb.

I doubt the existence of a single state on planet earth in the past 500 years that hasn't known enough to outlaw fraud. It ranks higher than protecting territorial integrity.

[faszika]

made in china :)

[daozenrod]

There is apparently an exemption to SEC reporting based on "National Security," which Bush assigned to Negroponte back in 06. The link is at financialsense in yesterday's market wrap-up. And the band played on--for the benefit of JPM? JPM probably owns a nice big slice of the FED, hence what is good for JPM is national security.

[daozenrod]

The 800 + 30 companies. All that was needed was an end to naked shorts and resultant creation of phantom stocks that exist not. All slated to survive the purposed crash.

They be posturing for a crash, to be ready to pick up everything on their approved survivor list, after Paulson gives them a trillion or two to do it.

It isn't like they haven't done this before, folks. Some say they are being dumb--I say they are being crooked as crooked can be.

Don't underestimate these rabid dogs.

[saadasim]

None of this matters unless the dollar is put back under gold or composite metals standards and the Fed Reserve is brought under Government control.

[psxwarrior]

How about eleminate the fed all together.

[cazlane]

Keep fighting the good fight and spreading the word Karl-massive thanks from across the pond both for these videos and tickerforum. Agreed that you'd have to be a masochist to be trying to trade these markets-listen to Karl, stay out!

[cycimian]

All this was predicted by Denise, Ron, Ralphy, Anyone who could see what this BilidiBush set into motion back in 03. Its only Paper Folks, And these bankers all need a shitkicking.

[nj0fra66]

Karl, what alternatives do you suggest, to make profit in this shorting financials forbidden market?

[kdenninger]

I would not even consider trading this market today unless you can be in the market all the time, literally, on a minute-by-minute basis.

The "we'll change the rules whenever we like" environment makes holding anything overnight hazardous to your investment account.

[2vintage68]

Housechores:

The S&L bailout was tiny compared to this propsals true cost, yet still resulted in the severe 1990-1992 recession. The scale of this "bailout" will cause an economic depression for 90 percent of the US population.

[CanterburyCat]

Mind you, it was very good music on the deck of the titanic -- like your ideas -- but it didn't save the ship.

[toosinbeymen]

Karl's solutions are sound, IMHO. It would have been nice if they would have been implemented earlier but maybe it's still not too late.

[CanterburyCat]

Fiddling on the deck of the Titanic.

[youtubasoarus]

Another great video. Thank you for providing us light in an otherwise hard to navigate financial market. It's easy to get distracted or mislead, you help to put focus on the important issues. Thanks again.

[InTheSticks1881]

Got it. Printing worthless dollars to buy worthless assets while destroying demand (consumer spending) via inflation is their plan. The stupidity is fantastic and the reason Congress will pass it. They've proven to be derelict and incompetent. Do they understand or care that Paulson will blow trillions over night and with what result? No!

[InTheSticks1881]

Despite what's sensible, they will do what they want. We are done.

[xenix2012]

Spot on Karl. As Always.

[valhala56]

Karl, you changed your tune. You seem to be for the bailout if they fullfill the requirements you put out.

There was a movie several years ago with Jon Voight, "Runaway Train" WE are on a runaway train it we will try like they did in the movie all kinds of desparte means to stop the train, and if we are unable to then the scenario will play out with most dire of consequences. See you in the soup line.

[TyredUvBS]

it really doesn't matter, the votes are there. it's going to pass. we might as well have the treasury be in charge of the legislative branch of government while we're at it since they write bills these days. like karl, peter schiff, ron paul, and others have been saying, there ARE alternatives but most of congress is taking paulson's word that there are none and this MOAB is the only way.

[valhala56]

This feels like a bad Sci-Fi movie coming true, a real life nightmare. The reason why people have not made their voices heard is the pain has reached the threshold that a majority needs to feel. You can hollar all you want but the American people are asleep at the wheel with the car careening off a cliff in the middle of the night and I am just waiting for the impact.

[kdenninger]

No, I am not for the bailout.

There IS a need to insure that we have mortgage liquidity in the market. But we have that guarantee. Its called Ginnie Mae. You know why you haven't heard about them? Because they didn't make crap loans and aren't in trouble! Oh, and their debt has an EXPLICIT federal guarantee.

We can debate whatever steps are necessary in terms of intervention AFTER we pull the plug on the stupidity. If we do it in the wrong order we are simply throwing money away.

[valhala56]

In front of congress today Paulson and Bernake put the situation in starkest of terms. Senator Christopher Dodd said their proposal is unacceptable. Congressional elections are coming up. My bet is they are going to give Paulson what he wants with a lot of extra's such as foreclosure protections and return on investment for the taxpayer. If I was betting I would bet the $700 billion will be given the green light by Congress. Great Vids Karl!

[tonyfarese]

unfortunately I agree with you.

[valhala56]

It's kinda of like a runaway train with no brakes going to fast for you to jump off. Some people may hope the unexpected or a miracle will slow this train down. Well I don't see it happening. It's history,it's happening now and it is going to change America forever in mostly a negative path.

[tonyfarese]

I like that analogy but the only way that you are on that train is if you are heavily invested in the equities market. You can still get off. Just sell and transfer your wealth to gold or silver. Im not on the train. I've been standing near the tracks watching the train wreck in slow motion for quite a while now. If any of you are still on it I suggest you disembark. There will not be a rally after this next bailout. Do not count on it.

[scabberdoug]

that is not true, anyone who is employed, is buying a home in this country is on that train. If you make a living in America you are going to suffer the burden of the wars, gas prices and these takeovers and buyouts.

[therealcaptobvious]

the 700 BILLION DOLLAR TRADE DEFICIT. That directly kills teh factor market's ability to pay their mortgages, and indirectly affecting the banks.

[disasterpastor45]

So is your video gonna be a video response to another video by uh say, a Bloomberg video of Barney Frank today? You might get more views by choosing a popular related video to send this as a video response to.

[pwtumd]

That is a great idea.

[housechores]

When stocks go down, bonds are supposed to go up...unless the vacuum is coming from commodities, or the interest rates are so low they are no longer attractive to store assets.

[bionicmisfit]

How can bonds go up when they are locked in on a percentage? Bonds sell at par value and at fixed interest, so how do you mean they go up when the price per share of stocks, either preferred or common, dives?

[toosinbeymen]

The price of bonds goes up, at least in a normal econom.

[housechores]

Can you explain critical differences between the S&L crisis in 1988 and the current situation? Charts show the markets improved soon after Bush senior signed the bill directing the tab to taxpayers back in 1988, could this crisis be different? BTW, I tend to agree with jaymzdean regarding the planned degrade of the dollar & switch to the AMERO.

[corvettedude346]

SLV is a way to buy "silver" that does not exist, the last thing anyone needs is more unbacked paper (like the ffederal reserve notes) do yourselves a favor, everyone buy some PHYSICAL silver, put it away and wait, this will pay off in the hyperinflation we are headed into.

[daozenrod]

Folks who wrongly see themselves as heroic figures from an Ayn Rand's Atlas Shrugged should have finished reading the book--it ended very badly.

We won't have a recovery with a plan set to "take care" of people who tossed the rules out. NYC and Chicago, both.

Fund FDIC and a federally owned bank to replace all these crooked bankrupt banks. I think they had their sociopathic domination plan go bad--or maybe it is going just as planned.

Time to abandon oligarchic neo-robber baron capitalism.

[crasster1]

I think if they debase the currency enough foreign investors will start dumping T-Bills. It could cause a USD collapse. EEEK!

[rundoetx]

Sorry Section 8 of the bill. Read it.

RundoeTX

[YouChooseASide]

Sir I have watched your vids evrytime you upload. If this bill is passed there must be a loophole somewhere that can be found. If so could you please find this hole that will help the people deal with this. The devil always leave holes, we must be smart enough to see them. YOU Are the person who will find and see them. If you could please.

[kdenninger]

There ain't one as submitted.

Who knows what's being mashed up in Congress right now. We'll find out - probably 5 minutes before the vote, if then.

It is really about stopping this folks and presenting the alternative, which is in the other videos. There IS an alternative that WILL work.

[YouChooseASide]

sir I understand that But they will pass this. That is a certain. And yes I have sent what you asked us to send and I email everyone i could send it to. But this will go through. I am sure you will find it. Thank you for your reply to my comment

[LeeHarveyOswald63]

How about the parasites find something other than the house for their debt instrument playtoy.

[TyredUvBS]

the 30:1 must end. All CEO's CFO's COO's etc need to be fired with no severance at all. the treasury or whatever this new troubled asset relief entity will be needs to have total transparency and not be allowed to pick, choose, and separate the good paper from the bad once they bail out a lender. they'll just leave us with the worst of the worst and keep the rest for themselves. it's all just a greed based power grab that won't help people in default one bit. won't help home values either.

[jaymzdean]

This is beyond simple greed. This is a planned, engineered destruction of the U.S. economy. They are trying to take down the U.S. to make room for the NAU and the Amero.

Don't believe me, huh?

Well, just wait.

[tenagliac]

Well if the prices are dropping it should be cheaper for the government to buy them ???

[Unkn0wnGuy]

I smell hyperinflation... get your wheelbarrows ready.

[wetalmorker]

The "market" is just now waking up to the new reality. The plunge protection team is doing all it can to shore it up, but just like the "bailouts", they are making the situation worse.

Traders aren't totally stupid, only somewhat stupid. They're hoping for relief that is not forthcoming.

Short sellers were the "conscience" of the market. Now that they are thwarted, the market has no conscience at all. We don't need more regulation. What we need is less intervention!

[toosinbeymen]

Less intervention? So they won't be needing our $700bn? Great news!

Some people hold on to the old saws regardless of the empirical evidence all around them. Less regulation is what got us here to the edge of the cliff.

OK, what's needed is smart regulation, not excessive regulation. Would you want to drive in a city that had no traffic laws?

[wetalmorker]

Ah yes, but who is to decide what is "smart"? Paulson? Bernanke? You?

As far as driving w/o traffic laws, those who are just plain stupid would take themselves out soon enough, along with many others who simply weren't paying enough attention. Same goes for Wall Street. Let the fools be fools, and resist the temptation to help them. Because, as we're seeing right now, they'll drag the rest of us down with them.

[Weaseldog2001]

And they may take out you and your family on the road, but that's because in a lawless environment, you'd be plain stupid to use the roads.

Likewise in a completely deregulated monetary environment, only the just plain stupid people will use money.

Rules are necessary.

Trying playing the board game 'Monopoly' sometime, without using rules.

[wetalmorker]

Suppose there was no speed limit, and no penalty for murder. Would you drive 100 mph on your way to the grocery store and pop a cap in anyone who got in your way? I should hope not. I know this is an extreme example, but I have a problem with "rules". Only the honest people follow them. Furthermore, they lull us into a false sense of security, thinking that everyone is following them. Rules don't deter crime, they make crime more profitable. :)

[Weaseldog2001]

We used to have roads with no rules. People would block them and demand tolls, robbing people, kidnapping them, killing them for sport.

Remove the rules, and there is no criminal behavior. Nothing to prosecute.

Without rules on the road, people will just hijack the trucks and steal the goods.

There are no extreme examples. You can find history littered with real events that you only think are extreme, because we have had rules for so long.

[AdvocacyCorporation]

Look at this!

watch?v=7HmVwr63NQc

Haostrom pointed this out (THIS IS IN THE BILL - section 8):

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

This is a TOTAL power consolidation by the FED and the Executive Branch!

Post an annotation on this!

[rundoetx]

This is one of the most important articles in this bill. It gives total power to the Government.

Campaign For Liberty

RundoeTX

[kdenninger]

Uh, did. Its in the first video. Go watch the rest of 'em.

[monymizer]

Hey Karl, I called all mine and sent out two emails. Hmm, I wonder if it would help if we started posting your two videos on major economists blogs. Like Krugman, Reich, Stiglitz, (if he has one), Baker. All the Republicans are listening to the ones that are already part of the administration. What do you think? Rubin and Summers (who had a HUGE hand at causing this mess). They are all so arrogant they won't listen to little guys.

[kdenninger]

Put 'em everywhere!

[forestlight5]

This fellow needs to be seated in front of Congress ASAP

[iTellYouNoLie]

they've turned cash into a perishable item.

:(

[firethefed]

Thanks for the update karl...!!

[f3hdemon]

Got Gold & Silver? better get some!

[YouChooseASide]

could you make a vid about what afamily should do who do not have the cash to put on the market. What should the basic people here do to ease the blow or beable to ride this out. I detail please

[lonwitness]

You made a vid on it sir. Food, food, food!

[YouChooseASide]

I know but there must be more that I didnt say.

[lonwitness]

You said it well. Maybe, get the tracks there's a train coming. Seriously, start withdrawing money from your bank.

[kdenninger]

1. No debt.

2. Six to twelve months liquid assets (you might lose your job, and have trouble getting another one)

3. Figure out what your minimum operating capital requirements are for your household, size down to there, and stash the rest.

If we truly get a bond market dislocation the pain is going to come hard and FAST. Like a potential DOUBLING of oil (and gasoline) prices almost overnight, among other things.

[timerat777]

No.4; Sell Alaska.