by Karl Denninger
Approximately half the service firms and over 1/3rd of manufacturers have shut down — either partially or completely.
There is much bullcrap being swung about claiming this is temporary. For many of these firms it is not. The inherent leverage in the system, which we have built and claimed to be a great thing, and which has powered not only our stock market but the very tax base our public services rely on at the state and local level, is essentially folding back on itself.
The margin calls are already happened in places where the federal government — and the fed — cannot stop them. There are now “pleas” coming from all areas of the financial “plumbing” crying for it to stop. But the truth is that it can’t stop.