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Conflucians Say: Lolly-lolly-lolly, get your outrage here!

From Market Ticker, Karl Denninger is MAD! – Bernanke Inserts Gun In Mouth:

We’ve got over a trillion in trash on our balance sheet now, which we promised would fix the problem but it didn’t do jack. That’s because nobody in their right mind will borrow money when the economy is in the tank and debt levels are above sustainable maximums. The only borrowers are people who are deadbeats, and that doesn’t help. Instead of clearing this out by forcing the bankrupt to take their medicine our “solution” is to attempt to devalue the currency by explicit monetization. We have little choice in this matter because the most-recent TIC data that has been published, along with what hasn’t been published (yet) but which we have, shows that foreigners have given us the finger in buying any more of our agency, corporate and sovereign debt. In short, we’re screwed – within months – and we know it.

At this point maybe The Hulk had it right: Stuff You Should Know, Can anger be a good thing?

All this and more will be discussed tonight on Conflucians Say: Lolly-lolly-lolly, get your outrage here!

Please join me (Katiebird), Riverdaughter, BostonBoomer, SM and Dakinikat at Conflucians Say:
Time: 10pm Eastern
Call-in Number: (347) 539-5420

And . . . . They’re Open!

56 Responses

  1. well good show I think I need to give SM a big Hug!

  2. Great show. dakinikat explains economic stuff so well.

  3. OUTRAGED!!!!!!!!!!!!!!!!!

  4. Nice job, Kbird! You have a very soothing voice,

    • zzzzzzzzzzzzz

      (giggle)

      Thanks for giving me the chance, Riverdaughter. Doing the switchboard 2 weeks in a row really made a difference for my learning curve.

      This was the first time I could listen AND watch for the callers!

  5. I caught the last few minutes, thanks so much for the clear, concise discussion of the current economic picture, plus the noir humor.

  6. KBird is the ultimate.

    Thank you.

  7. That was such a good conversation. I hope I thanked everyone before we got cut off. What a good group!

  8. sm, I wish you lived closer. I’d get doctor hubby to fix you right up. Bless his heart, he has always treated patients who needed it, and took whatever they could pay. I had old shrimpers in SC bringing me shrimp and tomatoes at the office, because that’s all they had. I worked with him for 11 years, and never once has he turned a single patient over to collections. Not one. He thinks it’s immoral.

    • Good for him!!! You have to bill but there is no law that says that you have to collect.

      • Oh, we billed! LOL! We had patients with huge balances, who got a bill every month, and paid us 20 bucks or whatever. So long as we billed it, we were okay with Medicare and the govt.

    • Your husband is a good man…..WMCB-I really do love that hat!

    • THANK YOU WMCB!!!!!!!!!!!

      Thank gawd for my county who fund for their county clinic with county taxes, I was able to go & get the help.

      It took a couple of months because I need to see specialists (Universal Heathlcare 😦 ! )

      Until then, I’m ALIVE. No insurance, and I still need to see that ENT to get 1 or both tonsils out, but I’m handling.

      How many others aren’t because they didn’t have the resources available to them?

      THAT’s what kills me. This should NOT be happening in the USA.

  9. I hate when I miss the good shows. Have to listen to the repeat now.

  10. the bad thing is if this recession starts feeding on itself …then its hard to get off the economic contraction wheel…..

  11. well fuzzy is saying good night befor spammy grabs me….long day tomorrow!

  12. http://blogs.abcnews.com/politicalpunch/2009/03/president-ob-15.html

    Obama exposes how he is spending his time in the WH….practicing his bowling. Oh, and he calls his miserable skill something like the Special Olympics and then says he didn’t mean to offend. Of course he did, he compared his absence of coordination and skill to that of the competitors in the Special Olympics. How is that NOT an insult?

    This bumbling idiot stole a job that someone so much more prepared and qualified deserved just so he could play in style.

  13. Is anyone watching The Tonight Show?

  14. BEFORE I GO:

    Katiebird, I can’t go to bed without giving you props for reminding me one of the great part of growing up in the 70s.

    SCHOOLHOUSE ROCK references cannot be unnoticed.

    Lolly, Lolly, Looly get your adverbs here!

  15. I’m trying to watch Leno but it’s making me really groggy. I want to see if they cut the Special Olympics remark.

  16. Banks have “toxic acids” on their books?

  17. Larry Doyle has a great article up at NQ, comparing the AIG mess to the LTCM mess in 98. I’d like to hear dakinikat’s and others take on it:

    One angle of the LTCM meltdown that has received very little public attention over the years was the manner in which Wall Street banks managed their own books and capital during that period. In short, the senior executives of the consortium of banks involved in saving the system during the LTCM meltdown became totally aware of LTCM’s positions. That confidential information was tremendously valuable because those positions obviously needed to be unwound. In layman’s terms, if I know you are in a position of having to sell something, I can drive the market lower in your face so you are forced to sell at an ever lower price. It is widely speculated that Goldman Sachs effectively front ran the unwinding of LTCM’s positions and made hundreds of millions of dollars in the process.

    Fast forward to today’s situation with AIG. The Wall Street banks certainly know what AIG’s positions are along with the fact that the government is trying to unwind these positions. Do you think Wall Street traders are sitting idly by as AIG tries to unwind this mess? Why has AIG needed an ever increasing amount of government money? Very simply, the markets that AIG has exposure to are continuing to weaken as they try to exit positions. Why are they weakening? It would be naive to think that other Wall Street traders are not once again front running AIG much as Goldman Sachs’ traders supposedly front ran LTCM in 1998.

    How can the government prevent any front running on behalf of Wall Street banks? Regulators should be scouring the trading records of every AIG counterparty on a regular basis. Are the regulators doing this? The government and regulators are certainly stretched very thin. Are Wall Street traders taking advantage of the situation? It would be naive to think they are not.

    http://www.noquarterusa.net/blog/2009/03/19/not-time-sensitive-aig-and-ltcm/#comment-1161311

  18. Haven’t read the NQ piece, but based on the description, and as always deferring to dakini’s expertise, I’d say there is a difference. Of course all the wolves are trying to take advantage of each other. But in the case of LTCM, they were mischiefing pretty much on their own, using extremely leveraged arbitrage bets on long bonds. When they blew up, the banks who stepped in to cover their debt got firesale prices. In the case of AIG, their main problem are these credit default swaps (CDS) they sold on everyone’s collateralized debt obligations (CDO), i.e. insurance on mortgage backed securities. (It gets even more confusing since all the banks themselves had CDSs on each other, and AIG itself owned a pile of CDOs.) Anyway, the housing market crashes, the value of CDOs collapses, and AIG all of a sudden owes a ton on its CDS policies if you will. But it’s not just AIG. Everyone owes everyone else, as well. So, unlike LTCM, this is not a case of the healthy banks bailing out a renegade. This is the government and taxpayers bailing out the whole financial system, because those housing values are not coming back to where they were. Geithner and Treasury have to execute the bailout with an iron fist. Proactively look for early cheaters on the bailout and have them drawn and quartered in public. Anywho, that’s my take. LTCM, more like a casino roulette loser. AIG, more like a casino poker loser.

  19. Two American women journalists working for Al Gore captured and detained by military in North Korea across the border from China. Huh?

  20. I’m not sure that your evaluation as posted here is accurate or on point. I agree with your statements that we should feel our anger and that we should caution ourselves to not let our emotions overcome our ability to reason. I am certain that Bush Republicans and Obama Democrats are significant masters of our ill fate at this moment. I am not sure that what Bernanke is doing right now is a bad thing. I think it is another move in the effort to “fix” banks, remove toxic assets from the system and begin to put a floor on asset valuations. I think our focus needs to be on blaming the whole DC political mess.

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