Defaulting banks - where will it stop?

[Jan Klimkowski]

Ticker Forum's Karl Denninger in typically pugnacious, and astute, form:

The Fed claims to be a "private central bank" but in fact that's a lie too - their losses are yours, and their "liquidity" is your tax money. If The Fed wants to be a "private bank" then cut it off from taxpayer subsidy and revoke its right to print money - instead, force it to compete for private capital just like everyone else. (Threaten Bernanke with that and watch his face turn white and underwear brown.)

The entire reason we are in this mess is because banks and other institutions have been lying about their exposure, capital levels and valuations, and we the people have allowed it to go on for more than a decade.

As noted previously both Wachovia and National City were sold for about 1/3rd of their claimed balance sheet value just days before the sale.

Trillions of dollars off-balance-sheet?

Can anyone spell ENRON?

http://market-ticker.org/archives/661-Th...Money.html

Meanwhile, it looks like Bush & Paulson will now not tap Congress for the second half of the $700 billion. Hmmm.

http://www.bloomberg.com/apps/news?pid=2...rNcRqcl94M

Whassup doc? What's really going on?