(click on image for clearer view)Life is interesting because of people like this. We need more of them.
I read Market Ticker almost everyday. Karl Denninger, who's opinions can be a little salty at times, is a genius. Karl has been an options trader for quite some time, and follows the markets with a sense of wit, wisdom and old fashioned honesty rarely seen in today's society. His ability to pick apart the actions of some of the biggest movers and shakers of the corporate world enlightens us to a view we cannot get in the mainstream media.
Do yourself a favor, as you find the time, to read what he has to say for the day. You may disagree with a few of his ideas, but you will always be entertained and informed.
The following is the whole excerpt from his most recent post. The subjects of my previous posts are an important part of why these people are protesting. I enthusiastically support them. Therefore:
“FED UP USA” STAGES FRIDAY PROTEST IN WASHINGTON, D.C.
Angry Citizens To Protest Federal Reserve and Government Fiscal Policies that have resulted in commodity price inflation, devaluation of the US dollar, and now threaten to destabilize the bond market.
Niceville, FLA (June 27th, 2008) – A group of Americans who met on an internet forum are converging on Washington D.C. from across the nation on June 27th to protest federal financial irresponsibility. The group, “Fed Up USA”, met for the first time last April to stage a protest outside Bear Stearns Headquarters after the Treasury announced $29 billion in guarantees to an LLC to entice JPMorgan to purchase the failed investment bank. This time, in Washington D.C., the group will continue to push for an end to government bailouts and the Federal Reserve’s acceptance of questionably-valued, unmarketable mortgage collateral in exchange for treasury paper. The group is also seeking greater transparency in financial reporting, elimination of SIVs and other off-balance sheet Enron-like accounting practices. The protest will begin at 8:00 a.m. at the Federal Reserve building. “Fed Up USA” plans to take the protest to the US Capitol later in the day.
The Federal Reserve’s acceptance of illiquid mortgages, car loans, boat loans, student loans, credit card receivables and foreign debt as collateral is unprecedented, even during the Great Depression. The Fed has already accepted so much questionable debt as collateral that it only has $25 billion of treasury bills left to exchange, representing 3% of its balance sheet at the time it bailed out BSC creditors. Karl Denninger, spokesman for “Fed Up USA”, explained the problem, “The Fed is in no position to orchestrate another bailout of a financial institution without calling into question the credit rating of the United States, the dollar’s status as reserve currency and the viability of the US bond market. But the Fed will do just that unless taxpayers demand that they stop. That is the reason it is so important to protest.”
“Meanwhile”, added Stephanie Jasky, “the Fed policy reliquifies banks to continue to lend to speculators without fear of risk as the Fed, in essence, has their back. That excess liquidity has found a profitable home in commodities, perpetuating the risky behavior that caused the problem in the first place. Furthermore, our elected officials appear to be encouraging fraud and financial irresponsibility by allowing banks to hide their bad assets. Instead, we are here to demand from congress and the senate that the speculators accept the consequences of their risky bets, not the taxpayers.”
If you’d like more information about FedUpUSA or to schedule an interview, please call Karl Denninger at 850-897-4854. Email is info@duxnro.com. Website is http://fedupusa.org.
I read Market Ticker almost everyday. Karl Denninger, who's opinions can be a little salty at times, is a genius. Karl has been an options trader for quite some time, and follows the markets with a sense of wit, wisdom and old fashioned honesty rarely seen in today's society. His ability to pick apart the actions of some of the biggest movers and shakers of the corporate world enlightens us to a view we cannot get in the mainstream media.
Do yourself a favor, as you find the time, to read what he has to say for the day. You may disagree with a few of his ideas, but you will always be entertained and informed.
The following is the whole excerpt from his most recent post. The subjects of my previous posts are an important part of why these people are protesting. I enthusiastically support them. Therefore:
“FED UP USA” STAGES FRIDAY PROTEST IN WASHINGTON, D.C.
Angry Citizens To Protest Federal Reserve and Government Fiscal Policies that have resulted in commodity price inflation, devaluation of the US dollar, and now threaten to destabilize the bond market.
Niceville, FLA (June 27th, 2008) – A group of Americans who met on an internet forum are converging on Washington D.C. from across the nation on June 27th to protest federal financial irresponsibility. The group, “Fed Up USA”, met for the first time last April to stage a protest outside Bear Stearns Headquarters after the Treasury announced $29 billion in guarantees to an LLC to entice JPMorgan to purchase the failed investment bank. This time, in Washington D.C., the group will continue to push for an end to government bailouts and the Federal Reserve’s acceptance of questionably-valued, unmarketable mortgage collateral in exchange for treasury paper. The group is also seeking greater transparency in financial reporting, elimination of SIVs and other off-balance sheet Enron-like accounting practices. The protest will begin at 8:00 a.m. at the Federal Reserve building. “Fed Up USA” plans to take the protest to the US Capitol later in the day.
The Federal Reserve’s acceptance of illiquid mortgages, car loans, boat loans, student loans, credit card receivables and foreign debt as collateral is unprecedented, even during the Great Depression. The Fed has already accepted so much questionable debt as collateral that it only has $25 billion of treasury bills left to exchange, representing 3% of its balance sheet at the time it bailed out BSC creditors. Karl Denninger, spokesman for “Fed Up USA”, explained the problem, “The Fed is in no position to orchestrate another bailout of a financial institution without calling into question the credit rating of the United States, the dollar’s status as reserve currency and the viability of the US bond market. But the Fed will do just that unless taxpayers demand that they stop. That is the reason it is so important to protest.”
“Meanwhile”, added Stephanie Jasky, “the Fed policy reliquifies banks to continue to lend to speculators without fear of risk as the Fed, in essence, has their back. That excess liquidity has found a profitable home in commodities, perpetuating the risky behavior that caused the problem in the first place. Furthermore, our elected officials appear to be encouraging fraud and financial irresponsibility by allowing banks to hide their bad assets. Instead, we are here to demand from congress and the senate that the speculators accept the consequences of their risky bets, not the taxpayers.”
If you’d like more information about FedUpUSA or to schedule an interview, please call Karl Denninger at 850-897-4854. Email is info@duxnro.com. Website is http://fedupusa.org.
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