Karl Denninger on our banking system that is currently based on lies and phony accounting

Via Zero Hedge

I feel it appropriate to help distribute Karl Denninger’s video response to the currently in vogue effort of the government-subsidized media to discredit those AMERICANS who question current government policy and who suspect that the economy will get worse before it gets better.

You must watch it. Karl Denniger rips Dennis Kneale, CNBC (and their corporate parent GE) a new one with a furious but factual explanation of why our current financial system is based on lies, fraudulent accounting, and that our major banks by most any yardstick are bankrupt. Yet the cover-up goes on. He closes by saying we will never hear the truth from CNBC because GE is itself awash in garbage financial instruments that they refuse to mark to reality.

Amazing stuff. Don’t miss it. That the left should be doing stuff like this is a given, but it continues its snooze, lost somewhere in the last century, unable to find the current one.

  • Sue

    Well, I watched it. And at the end of his diatribe wondered, “who is this guy?” I mean, is he a financial expert, or regulator, a banker … somebody with a lot of expertise, denouncing the financial industry from inside? Or is he just an angry guy, in close up for 6 minutes and 32 seconds, who likes to broadcast himself on an internet soapbox?

    Answer: He’s an angry guy, in close up for 6 minutes and 32 seconds, who likes to broadcast himself on an internet soapbox. His vocation is the design of internet security, e-commerce, communications, Unix system architecture, etc.

    I agree that mark-to-market is the only way to go. Suspension of the mark-to-market rule was highly political, meant only to delay the recognition of losses in the hope that they’d go away. If we all “think positive”, the reasoning goes, we will sunshine our way out of this economic disaster.

    The previous three sentences took me about 5 seconds to type, as opposed to 6 minutes and 32 seconds. And though I’m an auditor who’s read the mark-to-market accounting standards (and applied them in the past), I’m yet just another voice from the citizenry, stating my opinion (though more quietly than my fellow citizen, Mr. Denninger).

    So the real message here is that Mr. Denninger, on his angry soapbox, will get a lot more attention and be to many more credible than I. People *love* the mad tirade.

    • Well, I’ll just have to start videoing you, then. “CPA Sue Speaks Out Against the Banksters.” We’ll make it a continuing series. Start practicing your rants!

      Because – seriously now – a good rant can travel a long distance and influence many people.

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