Karl Denninger: Everything That Has Leverage in it Just Collapses!

[youtube=http://www.youtube.com/watch?v=kdIHgXLhaXg]

• RTAmerica:
  The German government has begun to prepare for a possible bail out of its second largest bank by assets, Commerzbank. Meanwhile depositors in the US have been pulling their money out of foreign-owned banks operating here, in what some call a “flight to safety.” As a result, these banks have seen the largest six-month fall in their deposits on record. Are these signs that a bank run is currently underway? Meanwhile, show me the money! That’s what lawmakers and customers have been telling MFGlobal executives to no avail. Now regulators report they have found the missing money! And we heard one top regulator allege Corzine knew customer money was dipped into. Corzine says he was told it was legal. But the big question, will customers actually get it back and is money safe in accounts once deamed sacrosanct? And as gold plunges to a five-month low, are we seeing the end to investors saying “follow the yellow brick road.” Or, does the broader collapse in commodity prices signal investors are running to cash, selling anything they can get their hands on. Could this be the excuse the Federal Reserve needs for QE 3 and will that even be enough to stop the crash this time around? To help us answer all of those questions is Karl Denninger, of the MarketTicker.com and author of the book, “Leverage: How Cheap Money Will Destroy the World.”

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