Market traders are a cynical lot especially when it comes to politicians. I voted for and donated to my President elect Obama. I hope Karl Denninger is wrong here and Obama on January 20th.... the shit will hit the fan...the Justice department goes after these crooks....because not for revenge but these Predetors need to be punged from our financial system.
"Must restart credit" - You can't until trust is restored, and doing that means JAILING all the fraudsters. Until the market and public is convinced that there are no more Madoffs and no more scam MBS and CDS underwritten by monkeys with no capital behind them, there will be no trust.
"Must get consumers spending again" - Not possible until the excessive debt is gone. We're here because of too much debt in the system, including on consumer balance sheets. Until and unless that debt defaults there is no marginal income to spend with. Tax cuts do not fix this.
"We have to make tough choices" - That doesn't include locking up the thieves, liars and fraudsters in NY and DC though, does it? Again - the issue is trust - confidence - and you can't get restore it until and unless the liars and thieves are purged from the system and put in prison where they belong.
"No longer can we allow Wall Street wrongdoing to slip through the cracks" - I'll believe you when Paulson, who was personally responsible for the leverage increase requests that led to these failures and bailouts, is under indictment. Until then I call this what it is - a lie.
There are some good pieces, like this:
From Obama's Speech.....
"This crisis did not happen solely by some accident of history or normal turn of the business cycle, and we won't get out of it by simply waiting for a better day to come, or relying on the worn-out dogmas of the past. We arrived at this point due to an era of profound irresponsibility that stretched from corporate boardrooms to the halls of power in Washington, DC. For years, too many Wall Street executives made imprudent and dangerous decisions, seeking profits with too little regard for risk, too little regulatory scrutiny, and too little accountability. Banks made loans without concern for whether borrowers could repay them, and some borrowers took advantage of cheap credit to take on debt they couldn't afford. Politicians spent taxpayer money without wisdom or discipline, and too often focused on scoring political points instead of the problems they were sent here to solve. The result has been a devastating loss of trust and confidence in our economy, our financial markets, and our government. "
If and when I see actual policies that address the root cause of this problem instead of campaign speeches, I will believe you Mr. Obama.
The campaign is over - you won - and now its time for you to go work instead of spewing bullcrap and platitudes, along with trying to borrow yet more money that we don't have which will only increase the mantissa of an exponential function that is doomed to go "boom".
"That is not the country I know, and it is not a future I will accept as President of the United States."
My answer: You're lying Mr. President-Elect.
Link To Comment
Karl Denninger's Market Ticker Forum
Tough words....but wer'e all in one hell of a mess...I pray that Obama uses his god given gifts....intelligence to take the right path.