Here You Go: It's Over in [Market-Ticker]

Posted 2011-11-21 11:14
by Karl Denninger
in Editorial

Here You Go: It's Over

We're done folks.

CNBC is reporting that there are now clients running out of the markets entirely because they do not believe their customer funds are safe.

That's the end of it. The belief that there are more MF Globals has now taken hold. The thieves have pushed it too far and now we've got the start of a global liquidity run, and with good reason.

The authorities both in the regulatory side and on the prosecutorial side have refused to put a stop to the thievery and now the risk factors have turned into realized risk.

The market is done folks. You can be right but if you make your bet in the markets, are right, and then get screwed anyway when someone steals the money and nobody goes to jail there comes a time when people begin to understand that it can happen to them and will unless they depart the market.

We're there folks.

Oh sure, there will be rallies and there will be selloffs. But there is no longer a market, there is no longer a thing to trade, and there is no longer a reason to believe that superior analysis will lead to profit or even safety.

This isn't just about speculators - it is also about farmers, shippers, airlines, manufacturing concerns, everyone in business who has a need to hedge.

More than four years ago I said that the government had to step in and demand that both off-balance sheet games be ended permanently and in all forms and that all derivatives had to be put on an exchange, without exception, and that every dollar of underwater position had to be backed by an actual dollar of capital in real money, held and known to be safe.

The regulators refused and now it appears that what was put up on a regulated exchange was effectively stolen.

Well folks, then none of your investment accounts -- not your IRA, 401k, not even your bank account -- is safe.

Diversification is a strategy but the risk remains. It is up to you to decide how much you're willing to risk losing to a crook. If the answer is "none" or you cannot reduce the at-risk portion of your assets to what you're willing to lose to fraud then you can no longer participate in the market at all, in any form, nor even do business with a bank.

That sucks, but it is what it is and if this meme spreads -- and it will until it's stopped -- we run the risk of a "sudden stop" economic event.

I hope you're ready for it -- I am to the best of my ability, and you ought to be.

Discussion below (registration required to post)

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User Info	Here You Go: It's Over in forum [Market-Ticker]
Gates Posts: 6250 Incept: 2008-01-29 Scottsdale	Well... no one here can say "we didn't see it coming"... 2011-11-21 11:16:38 Permalink
Inkt2002 Posts: 99 Incept: 2009-07-15	This is the 9th "its over" thread this year. Should be interesting if this is the one that seals the deal. 2011-11-21 11:18:36 Permalink
Supercleanfund Posts: 1469 Incept: 2007-11-12 The Island City, CA	Happy Monday! ---------- - * - * - * - * - * - Never underestimate the power of wishful thinking. 2011-11-21 11:20:05 Permalink
Gates Posts: 6250 Incept: 2008-01-29 Scottsdale	Whats left? Germany gives the nod and the ECB prints? Benny steps in if they don't? won't matter... 2011-11-21 11:20:28 Permalink
Etz Posts: 13887 Incept: 2007-06-26 LA Online	Where was CNBC during the FRAUDULENT 1200 point rally??? ---------- Legal chicanery and beneficent darkness are the banker's stoutest allies - F.Pecora. 2011-11-21 11:20:53 Permalink
Duc888 Posts: 7368 Incept: 2008-11-06 CT, the UNconstitution State	...well, I'll be ****ned if I'm gonna pay another penny towards these ****s "bail outs". ---------- ...burp 2011-11-21 11:23:17 Permalink*
Quillbill Posts: 1469 Incept: 2009-06-23 Northwest Illinois	I used to see a Ticker like this and freak out and panic prep(because I believe what you say as you back it up with logic I clearly understand). Now I look around me and calmly say "I have done my best to get ready" so here we go. So a big hat tip to you TickerGuy...... ---------- It is a new day....DO SOMETHING WITH IT! 2011-11-21 11:23:46 Permalink
Dashingdwl Posts: 9752 Incept: 2007-06-26 los angeles	Government? You want Government to step in and do the right thing? LOL. Whether or not this is the event horizon we've all be talking about, Government will not do the right thing. They are incapable, complicit and do not act in the People's best interests. ---------- When you are hard and disciplined, you can be principled. People fear you because they have no leverage against you. It's the truest form of Liberty. 2011-11-21 11:23:59 Permalink
Dashingdwl Posts: 9752 Incept: 2007-06-26 los angeles	Duc888... that's MOST of the problem. You don't get a say so or a vote in the matter. ---------- When you are hard and disciplined, you can be principled. People fear you because they have no leverage against you. It's the truest form of Liberty. 2011-11-21 11:24:59 Permalink
Billonthehill Posts: 2004 Incept: 2008-01-20 Six feet short of heaven	Italian yields at 9% Greek 10 year at 26% Spain spiking Europe melting Market down 300 points Super committee stalled and spiraling in Just another Manic Monday ---------- "Interesting to be talking about Deeds of Trust. When there is no trust." - Anonymous Caller to KOH Reno Talk Radio 10.21.10The era of procrastination, of half-measures, of soothing and baffling expedients, of delays, is coming to a close. In its place we are entering a period of consequencesChurchill 36 " 2011-11-21 11:30:14 Permalink
Medicdan Posts: 8001 Incept: 2010-02-11 Scottsdale, AZ	Is there some data on this? Or is this floor rumors? Where is this information coming from? I don't doubt it, but I would like to know if this is just a few traders that "just heard" or an actual firm came out this morning and stated this. ---------- Arizona & desert gardening http://azediblegarden.com/ 2011-11-21 11:30:37 Permalink
Fraudster Posts: 4170 Incept: 2011-05-10	Quote: This is the 9th "its over" thread this year. Should be interesting if this is the one that seals the deal. Seconded. ---------- *"Let China sleep, for when she wakes, she will shake the world."* - Napoleon Bonaparte *"Circulation ceases first at the outer edges [Europe and Japan]. It will take a while yet for the decay to reach the heart [America]."* - Foundation & Empire by Isaac Asimov 2011-11-21 11:32:32 Permalink
Dazedncornfused Posts: 310 Incept: 2010-10-13	Etz, here's where CNBC and the rest of the US press was Exposed: US press 'freedom By Pepe Escobar of the Asia Times http://www.atimes.com/atimes/Middle_East.... "If you perform the job of an actual journalist, telling truth to power, forget about attending press conferences at the White House, Pentagon or State Department. You won't even be admitted in the building. " Yup, Pepe nails it. The press is not going to talk about the mischief of Corzine, it'll interfere with his nomination to succeed Bernanke. ---------- Stand up and be counted or line up and be numbered. 2011-11-21 11:33:04 Permalink
Billonthehill Posts: 2004 Incept: 2008-01-20 Six feet short of heaven	Gary Kaminski has been crying for a week now on CNBC stating that ALL trust of traders ended when MFG blew up. ---------- "Interesting to be talking about Deeds of Trust. When there is no trust." - Anonymous Caller to KOH Reno Talk Radio 10.21.10The era of procrastination, of half-measures, of soothing and baffling expedients, of delays, is coming to a close. In its place we are entering a period of consequencesChurchill 36 " 2011-11-21 11:33:13 Permalink
Jal Posts: 512 Incept: 2009-03-25	What will they do who? They are so used to making money by using someone else's money and leveraging it. The best and only sustainable leveraging is to plant a seed and reap the crop. jal 2011-11-21 11:33:22 Permalink
Aztrader Posts: 6648 Incept: 2007-09-10 Scottsdale, AZ	The government steps in and does the right thing and the S&P goes to 800. These crooks will never allow that to happen even though the market will do it on its own. They won't believe that their ponzi will ever end. Fraud is their middle name and they are lovin it. We have watched them get away with **** that would make the devil shiver............. Only a complete collapse of the system and markets may wake everyone up. This would be the ultimate kick in the ass that is needed. 2011-11-21 11:34:38 Permalink
Widgeon Posts: 13481 Incept: 2007-08-30 Region formerly known as the United States	Quote: CNBC is reporting that there are now clients running out of the markets entirely because they do not believe their customer funds are safe. I guess they heard about me. Written elsewhere, I closed my main trading account last week and got the check on Saturday. I've not traded in over a year, but still had the account "just in case." No More. 2011-11-21 11:35:01 Permalink
Billonthehill Posts: 2004 Incept: 2008-01-20 Six feet short of heaven	Works till you eat your seed corn. That is what we have done. There will be no crop this spring. (So to speak) ---------- "Interesting to be talking about Deeds of Trust. When there is no trust." - Anonymous Caller to KOH Reno Talk Radio 10.21.10The era of procrastination, of half-measures, of soothing and baffling expedients, of delays, is coming to a close. In its place we are entering a period of consequencesChurchill 36 " 2011-11-21 11:35:59 Permalink
Flappingeagle Posts: 1224 Incept: 2011-04-14	What is the over/under on how long until one of O/Timmy/Ben makes a "restoring confidence" or "provide liquidity" type speech? Personally, I've had tons of confidence in this market for a couple of years now. Unfortunately that confidence is that it is all a rigged market where they are the sharks and you are the bait. Its the kind of confidence that is behind the smile that a bleeding swimmer sees coming toward him while in the ocean. To put a twist on the phrase the state lottery uses: The most sure way to lose is to play. Flap ---------- Here are my predictions for everyone to see: S&P 500 at 320, DOW at 2200, Gold $300/oz, and Corn $2/bu. "You can't build a house of cards on a shaking table." - Tony Johns The January 2015 AMZN put at $130 (cost $4.25) will be a winner. 2011-11-21 11:36:28 Permalink
Bagbalm Posts: 4247 Incept: 2009-03-19 Just North of Detroit	CNBC link? 2011-11-21 11:37:13 Permalink
Widgeon Posts: 13481 Incept: 2007-08-30 Region formerly known as the United States	For those criticizing KD, just because gov has been actively stepping in and manipulating markets across the globe to maintain the appearance of function doesn't mean it's NOT OVER. Just means it's being run by criminals and you (and me) aren't in their club. 2011-11-21 11:37:57 Permalink
Steph4liberty Posts: 1676 Incept: 2010-10-22 Raleigh, NC	Quote: This is the 9th "its over" thread this year. Should be interesting if this is the one that seals the deal. I see this as, at minimum, 9 different opportunities to prepare for the coming financial storm. ---------- "Man will never be free until the last Banker is strangled with the entrails of the last Politician" - unknown "This isn't a market anymore, it's a computer game." - Drench 2011-11-21 11:41:14 Permalink
Medicdan Posts: 8001 Incept: 2010-02-11 Scottsdale, AZ	Widgeon, I am definitley not critcizing KD. I make a good living trading. If the sky is falling, it would be nice to know. If it's not falling for another 6 months, or six years, I am not going to just walk away from income because of a blog, etc. I am sure Karl knows exactly what I am talking about. ---------- Arizona & desert gardening http://azediblegarden.com/ 2011-11-21 11:41:19 Permalink
Billonthehill Posts: 2004 Incept: 2008-01-20 Six feet short of heaven	Bag. It was just during a segment of crosstalk. Doubt they have a segment on it. Happened a few minutes ago. Kaminski on now talking about it. He is talking about analysts balance sheets on MFG. Kaminski saying leverage ratios are way up and he is saying there may be many firms with losses that will show up soon. He is standing and wringing his hands with nervousness. He is stating missing customer funds with MFG may be 1.2 billion not 600 million. ---------- "Interesting to be talking about Deeds of Trust. When there is no trust." - Anonymous Caller to KOH Reno Talk Radio 10.21.10The era of procrastination, of half-measures, of soothing and baffling expedients, of delays, is coming to a close. In its place we are entering a period of consequencesChurchill 36 " 2011-11-21 11:41:52 Permalink

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