By Karl Denninger: In 2007 I began writing The Market Ticker due to the
outrageous conduct of various branches in the (US) Administration and
portions of the Capital Markets. Endemic fraud in the financial system
that had generated unbridled and outrageous credit creation threatened
the collapse of our entire economic system.
The consequence of
this should have been thousands of indictments, prosecutions and
imprisonments -- of banking executives, of members of Congress, of
various executive branch officers in various agencies and more. The
banking system should have been forced to match assets to liabilities
and either put up the margin to back their bets or liquidate them -- and
if that forced them out of business and collapsed asset prices by 90%,
so be it.
Instead our government took the easy way out. It doubled down on the fraudulent models of the past.
The consequence of
this should have been thousands of indictments, prosecutions and
imprisonments -- of banking executives, of members of Congress, of
various executive branch officers in various agencies and more. The
banking system should have been forced to match assets to liabilities
and either put up the margin to back their bets or liquidate them -- and
if that forced them out of business and collapsed asset prices by 90%,
so be it.Instead our government took the easy way out. It doubled down on the fraudulent models of the past.
