How To Fix Our Banking System
by Karl Denninger
karl@denninger.net

fixit.pdf (pdf alert, Right Click | Save As)

NOTE: This and other alternatives must be examined before our nation embarks on what may be a disastrous
path.

NOW WRITE CONGRESS AGAIN!! - This thing ain't gone yet, it will come back.
They will try again. BUT... Understand, we get ONE CHANCE to fix this right.
I keep hearing these one-liner plans to bail out homeowner mortgages, I feel like smashing my computer / tv screens.
Bailing out homeowners is NOT GOING TO RESTORE TRUST IN THE MARKETS!

Note carefully - Paulson's plan was $700 billion, and Bernanke spent $630 billion - almost the entire amount proposed - but failed to fix the problem.
The Fed threw $630 billion into the market before the vote, and yet the S&P 500 was down 40 handles anyway, and in fact tanked after the vote. (you probably didn't even hear that)

Bernanke PROVED Paulson Plan Bankrupt

Please Turn your corporate fascist news sources off. Every . day . they . lie . The claims of "liquidity" solving the problem it is not working, despite infusion of $630 billion in central bank liquidity this yesterday.

Please get organized and think for yourself. You are responsible to hold your government responsible.

Resources:
Those Who Supported The Bailout
Fixit PDF
Angry Voter PDF
Specific Proposed Alternative to (the Various Versions) of the Paulson Plan

Just a reminder - When the Titanic was sinking, the rich scrambled for the life boats while the lower classes were locked in steerage.

These are all the same people who caused the problems and they want to be responsible for fixing it.

Thanks for that insight. But could you explain or clarify what you mean. I may be reading what you said wrong, but it almost insinuates that I am rich. Which I assure you I am not. (This is not a personal attack, it's a question requesting clarification)

My Background
I have from the date I was born (March 1963) to the current date never made more than $11,000 a year. And only ONE year I made barely over $10,000 1986, and I owe almost $3,000 for that year (according to an IRS audit, I screwed up on the math.) So how is tacking on $14,400 to my bill going to um, fix the economy? I am curious to hear an answer, from anyone here. Oh and since I have made $0 since 1995. How am I to pay 17k? I don't have health care, and frankly my health is bad, which is why I haven't worked. I have been supported by family since. I keep my eye open for a job/contract to pay the IRS off. I admit I owe it. I will pay it.

Back in the day I could shovel 20 yards of soil on your 35' roof by myself in one day. It ain't like I didn't want to work. It's that I can't handle it anymore. (you want me to have a heart attack?) Today I could find 20 people (not American citizens) to do that job-- it would take them at least a week to get it done though, if they didn't screw something else up. Remember I would have it on your roof in one day, no complaints. I built thousands of homes, do I own a home? NO. And I practically built Folsom, California, and parts of Sacramento. Doing something for each unit. Joist and sheeting, Roofing, Cement, Landscaping, Electrical, etc. I am not lazy, I am not stupid. I have since gone into electronics, then programming and computers, web dev, open source, etc. Oh yeah, I am an USAF veteran 1981-1985 (Aircraft Electrician on F4-G's) honorable discharge / 85-87(inactive reserve).

I don't think it's constitutional to make me pay 17K (what the fascist media tells us) yet honestly probably MORE as it's more likely to be 5-7 trillion dollars, that means your $1 dollar is going to be worth 50 cents.

No I am not for this bailout, I am for restoring trust in the markets. Then finding out what's on the books, jailing people, and then POSSIBLY bailing things out.

That's Not what I am telling you. Cite your sources. I cited mine. Or clarify your statement. WHAT PEOPLE? If you mean Bernake and Paulson, we agree. If you mean Karl Denninger my opinion is your wrong.

Also, to clarify my position.

You as a dishwasher, or cook making $5-$10 an hour should not have been able to even GET a loan for a $500 - $700k home.

You should NOT be bailed out.

When I screw up with $3000.00 (actually it was $1800, compounded interest now it's about 2500), the IRS nabbed my ass.

Okay I owe that. But I ain't paying something that takes more than a year to bail some frigging dishwasher who tried to get rich and got scammed by some real estate / Mortgage co.

Don't any of you remember the SPAM in your email box about mortgages?
Did anyone BESIDES ME, bother to forward that with headers to the FTC?

And what have they done?

Please don't be vague in this thread.

I have to turn my show in today at public access and I don't have time to muck around with vague one liners that don't get exactly to a point.