MSNBC clip. (after the 15 sec advert)

Jim Cramer, who is just a mouth piece for the banking system is confronted with the 'Money printing causes inflation" argument.

In response he lets slip that the bad paper amounts to 1.2 Trillion! and that every bank in America is Insolvent!

It doesn't take much to get Jim to go "off message" from his bank CEO masters.

Well worth a watch. Everything else Jim says is shameful!

MSNBC Morning Joe

I think probably most banks around the globe are insolvent.

Every bank in the whole history of everything is technically insolvent. Some are just more insolvent than others

and has been since 1929.

Gold and silver thumbs-up from Cramer

Isn't Jim Cramer the hyperthyroidic TV pundit with "speaking to deaf people" syndrome? The guy who advised people to leave their money with Bear Sterns.

Link.

So he knows his stuff then?

The interesting bit is about 5 minutes in. After being confronted with the "money printing causing inflation" argument. You can see Jim's difficulty continuing his 'ethanol' argument.

He says the number is $1.2 Trillion, he says "cards on the table". I don't think he's talking about Freddie and Fannie. He's talking about the impending writedowns by the Banks.

Then he shocks the woman presenter with his "is Bernanke dreaming" "all the banks in America are insolvent, everyone knows it"

I can't believe he's going with the "lets save the banks first" line, and deal with the crippling inflation later. He means keep printing money to bail out my buddies in the banks, and screw the poor of the world.

Absolutely shameful in my opinion.

Jim Cramer is a f*cking clown.


(but he's right about the banks, though)

Jim Rogers on CNBC talking about Fannie Mae and Freddie Mac, and the proposed bailout. Watch the others stumble and stammer as they try desperately to perform the media’s function of defending the state and the status quo against Rogers’ relentless attack.

http://www.youtube.com/watch?v=rcIBFLSmVGA...forliberty.com/

Watched the clip.

Skip 4 mins 30 sec into the clip and hear the comment about all banks since the Medici's being technically insolvent and the reaction from Rogers!

"Its only 2 years of mortgages" WTF??!!!!!! This is a guy whose just called it as it happened, he was wildly bullish before the credit crunch, and has just bull****ed his way through since! Comedic value only.

http://www.timesonline.co.uk/tol/comment/c...icle4340443.ece



I bet that makes you all feel better

Nothing to worry about, move along now.

I think the grim reality is that you have to save the banks first. Without sorting out the banks (or the critical ones at least) then the rest of the economy will come to a grinding halt.

Even Roubini (in that other link yesterday) said they need to sort out the systemic problems (i.e. deflation) and worry about any inflation later. Oil and comms inflation isn't because of what is happening now, it is a result of the excess credit of the Greenspan era. So that is a red herring imho. Now the focus is preventing a total meltdown which is why I think Bernanke is correct in supplying liquidity now and slashing rates now. He has little choice. He's fighting deflation.

The other point is that ALL banks are insolvent if punters want their money out today.

So the fact that IndyMac wasn't on the watchlist is irrelevant. If the best capitalised bank had a run tomorrow it would have to close (or be granted liqudity by the CB if they wanted to save it). That's the nature of banking.

Then close them and cancel all the "debts".

****** it, roll the dice.

An argument for holding tangible assets - including land and property, rather than pieces of "paper" then?

Another site I visit is holding how many banks will they sieze this weekend. Only one this weekend, one in Florida. They always wait for weekends.

The trouble is that the entire world economic system is built on fractional reserve banking. The result is that the entire banking system rests on a very dangerous commodity - confidence. At the moment, confidence is at a low, and for very good reason. The banks have been lending like drunks, without any consideration of the fundamentals of the economy. This applies to both the UK and US. There is a rather unusual post here which compares the banking system in the real world with the banking system in virtual worlds, which illustrates the point.

I like your blog.

Thanks, positive comments are always appreciated...

I didn't say why.

some one was saying assets bought with debt (like housing) will fall in value. but assets bought with cash (traditionally), like food, will rise in value.

so land and property will fall as debt dries up. food will rise as the cash supply skyrockets