Thursday, October 1, 2009

Karl Denninger: "We Need to Stop the Looting [of Taxpayers] and Start Prosecuting [the Looters]"

Part 1
Karl Denninger, who offers his commentary on the markets at market-ticker.org, speaks on the economic crisis at Liberty Alliance's stop in Tallahassee, Florida.

http://www.youtube.com/watch?v=LNaBYZ6IDWk

For more information on Liberty Alliance, go to this link: http://americanlibertytour.com/

Selected Quotes:

"Credit has expanded in our economy in the last 28 years faster than the economy has grown in every year but one . . . . Eventually, it's going to blow up."

"We have to return to sound credit and sound banking."

"All the people who broke the law need to go to jail."

"We need to stop the looting and start prosecuting instead."

Part 2


http://www.youtube.com/watch?v=yvvZlguz2fg

Selected Quotes:

"Henry Paulson, our Treasury Secretary at the time, went to the SEC in 2004 and had them remove the leverage limits from the investment banks. Formally 14 to 1, he had them take it off so they could put on as much leverage as they want."

"Bear Stearns, Lehman Brothers, Fannie, Freddie, AIG, all blew up at 30 to 1. None of them would have failed had that not happened. None of them. That's a mathematical fact."

"This is not a partisan issue, ladies and gentlemen. It's not Left or Right. Both parties are equally to blame and yet it is the partisan nature of politics in this country that divides people who want to stop this."

"We still today have the FHA right now giving people loans that require more than 50 percent of gross income to make their [monthly] payment. . . . Yet these are supposedly Hope for Homeowners, we are told, this is helping people keep their house. Yeah, right. helping some bank still your house after which they can make a tidy profit."

"Speaking of making tidy little profits, you know this guy George Soros. You all know him right? He bought what was left of Indymac bank after it blew up, along with a coalition of other people [from both the Left and the Right]. They got the government to guarantee most of the losses they could possible take write down the paper below that number. So they have a guaranted profit profit. They cannot lose money."

"Guess who gets to bill for the difference? There's a mirror in the bathroom over there is you don't know who it is. This is the kind of looting that's going on every single day."

"And yet, if you have a mortgage that was written from Indymac, they won't agree to a short sell so you can get out from underneath that loan and out from underneath that house, because they have no reason to do it. They'd much rather force you out into the street, ruin your credit because they can make another couple thousand dollars courtesy of you who paid for the bill from your own portfolio through your taxes."

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