Reply #68: Karl Denninger essays and a video

[DemReadingDU]

9/14/08 Game Over

So this weekend everyone who is a "who's who" huddled in New York at The Fed to figure out what to do with Lehman Brothers.

The market sat on pins and needles, and in fact ramped by nearly 10 full handles (close to 1%) in the last 10 minutes before the futures locked up for the weekend, in the vain belief that there will be some "resolution."

I'm here to tell you that there is no resolution, no fix, and we now face a stark choice between most of American Finance being sucked into the vortex, and everything, including you, being sucked into the vortex.

Yes, those are some stark - and harsh - words.

more... and be sure to watch the video at end of essay. about 8 minutes

http://market-ticker.denninger.net/archives/579-Tilt-Game-Over.html



9/14/08 Citizenship Is Not A Spectator Sport

Last night we saw the mother and father of all implosions - and attempted "sticksaves" and "power grabs", all at once.

First, the implosions.

Lehman Brothers has gone down and Bank America has forcibly swallowed Merrill Lynch. Forced by The Fed, one assumes - they surmised (correctly) that come Monday shorts would attack Merrill immediately and in force, thrusting them to the bottom of the pool if they did not first insure that they couldn't be attacked. So a deal was brokered, and now we have gone from five investment banks to two, with the count decreasing by fifty percent in one day.

That's right - Morgan Stanley and Goldman Sachs are all that's left, and they won't last long. Say good-bye to the last pieces of the Depression-era legislation that prohibited the co-mingling of investment and commercial banking, the hard way.

ALL investment and commercial banking is now in the hands of a very small number of institutions, with the key players being JP Morgan and Bank of America.

lots more...
http://market-ticker.denninger.net/archives/580-Citizenship-Is-Not-A-Spectator-Sport.html


Edit: Hope everyone takes the time to read both of Karl Denninger's in-depth essays and watch the video.