by Karl Denninger
What else is there to say?
The last time we were here it was May of 1997.
Ten full years of market gains are gone. Evaporated. Finished.
Confidence is absolutely destroyed. The government, which is an 80% owner of AIG, failed to warn prior to the company claiming that it will report a $60 billion loss next week and if it doesn't get more government money by Monday it will file for bankruptcy.
This aborted a nascent rally off the lows and shoved us to NEW lows - the closing lows.
Folks, this is the government. It is not an "ordinary correction." It is the intentional hiding of losses and the truth from the American people along with investors worldwide.
These acts are pure evil; they are premeditated, intentional, and have destroyed confidence, and unless the government stops this right now we are going to be seeing the DOW at 3,000 before the end of the year, the S&P will lose 50% or more of its remaining value (yes, that means the S&P will trade near 350 - or worse), 20% of the S&P 500 will go bankrupt and 20% of America will be unemployed.
It is that simple.
Your 201k that was a 401k is headed for a 51k.
Thank our President and his administration.
He promised change.
We didn't get it, and the market called his bluff.
