Update: Russia Exchanges Closed

Posted by Karl Denninger at 07:21

Both the MICEX and RTS exchanges have been closed - lock limit down.
The markets have rendered their decision on the G7, Geithner and Obama's administration thus far, as expressed by Rick Santelli on CNBC this morning. As a picture is worth 1000 words, here 'ya go:

CNBC was running Terminator II theme music as their bumper this morning; that's pretty accurate. There is no chart support left between here and (unfortunately) the 500s in the SPX, and there's an argument to be made that the next real support is down around that dreadful 210 target that I laid out a couple of weeks ago.

Obama's administration must stop dicking around with asset prices. The "credit freeze" is manufactured as a consequence of idiotic actions of government; by at the same time threatening to support asset prices and destroy their value they have blown bid/offer spreads out to the point that trades cannot take place.

Read on...

Ok, Peacenik has calmed down. (See previous post) This is only information afterall. Nothing Peacenik can do about it. So what if Russia had to close its stock exchange. So what if the markets are tanking and voting thumbs down on Geithner's stimulus plans. Pogge is starting for the Leafs tonight. And Canadian Tire has a sale on portable generators. And Peacenik still has some beer in the fridge. Life is good.

Insanity Prevails

The New York Times is reporting Geithner Said to Have Prevailed on the Bailout.

The Obama administration’s new plan to bail out the nation’s banks was fashioned after a spirited internal debate that pitted the Treasury secretary, Timothy F. Geithner, against some of the president’s top political hands.

In the end, Mr. Geithner largely prevailed in opposing tougher conditions on financial institutions that were sought by presidential aides, including David Axelrod, a senior adviser to the president, according to administration and Congressional officials.

On Monday evening, new details emerged after lawmakers were briefed on the plan.

Read on...

Everyone knows Peacenik has already been mezmerized by foolishly looking in the black hole of debt. Trillions and trillions of dollars of debt. Debt that can never be repaid. There isn't enough money in the world to pay this debt. Peacenik thinks a better bank bailout plan would be to guarantee the deposits in these banks. Thus helping regular people. Guarantee the pension investments in these banks. Thus helping regular people. And let the risk takers, who gambled in the belief that the government (regular people) would bail them out, get wiped out. Then put the management of these companies in jail and confiscate their property and bank accounts, on shore and off shore. Shut the banks down. Promote tellers and janitors to positions of management and start over. They could not do a worse job. And regulate the financial industry so that it is not a casino but rather a place to deposit your paycheck and to borrow to buy something at a reasonable rate of interest. That's what Peacenik would do.