Tag: Federal Reserve

UPDATE:   The link below should work now.  

Here’s a video everyone in America should see.  If you’ve felt like you’ve never quite understood the whole financial “crisis” that occurred last fall, the repercussions of which persist to this day (and will for, quite possibly, generations), this video explains it all in a clear and concise manner.  

Elliot Spitzer than goes on to explain that what was perpetrated on the United States, by collusion between the Fed and the very banks that control it, was a massive conspiracy to defraud the United States — a Ponzi Scheme he calls it.

Now Elliot Spitzer’s dick may have gotten him in trouble, and he certainly displayed bad personal judgement by sleeping with hookers while in public office, but there’s nobody who knows the whole NYC-based financial universe better than he does.    There’s a reason they were looking at his life with a microscope, trying to find anything they could to bring him down.  Because he was one of the few threats to the corruption that has taken over Wall Street and the banks.  Now he’s out of the picture as Governor of NY but he is free to speak his mind, which is a good thing.  So when he says “Ponzi scheme” people listen.

Trillions of dollars, folks.   Trillions, handed to the very banks who robbed us all in the first place.   It’s like the gamblers at the casino suddenly ran out of money, so they held guns to the heads of everyone they could find and emptied their wallets to pay their own gambling debts.  Watch it.

Hm, well the embedding doesn’t work for some reason.   Here’s a link instead:  

UPDATE:  FIXED LINK (the other one worked before, but now does not):

http://www.msnbc.msn.com/id/22…

(if anyone has any tips for embedding MSNBC video, let me know and I’ll try it here.   The embed code they provide doesn’t work)

Want to know what an Ivy League education will get you?  

Apparently nobody at the Federal Reserve has any clue where the trillions of dollars that have come from the Fed’s expanded balance sheet have gone. Additionally, nobody there seems to have any idea what the losses on the Fed’s $2 trillion portfolio really are.

Here’s a question? Have you done anything or is it your job to just get in the fucking way? Have you ever just wanted to grab one of these SOB’s by the throat and just shake the truth out of them?

Sometimes a picture says more than words.

This was the FED’s balance sheet up until 2007.

This is what has happened to the FED’s balance sheet from 2008.

For all you defaltionists out there … this Bud’s for you.

Nuff said.  (:o)

Digby observes that the American economy is essentially in the hands of the High Priests of the Federal Reserve, who do not answer to anyone, least of all to the great unwashed masses who allegedly aren’t equipped to handle something so important as money.

Considering the fact that America’s banking system has become the Clusterfuck of All Time, it seems to me that the High Priests of the Temple of Bernanke are the ones who can’t handle money.  Or keep track of it.  Or reveal how many trillions of dollars they’ve printed and who they’re handing all those trillions of dollars to.

Congressman Grayson:

The Federal Reserve has refused multiple inquiries from both the House and the Senate to disclose who is receiving trillions of dollars from the central banking system.  The Federal Reserve has redacted the central terms of the no-bid contracts it has issued to Wall Street firms like Blackrock and PIMCO, without disclosure required of the Treasury, and is participating in new and exotic programs like the trillion-dollar TALF to leverage the Treasury’s balance sheet.  With discussions of allocating even more power to the Federal Reserve as the ‘systemic risk regulator’ of the credit markets, more oversight over the central bank’s operations is clearly necessary.

Even more oversight than there already is???

Wow.  I didn’t know it was possible to have even more oversight over that Temple of Secrets and its Branch Temples on Wall Street than we already have.  But I know this much. . .

The High Priests will be very offended.  They’d already ordained themselves as Supreme High Pontiff Systemic Risk Regulators and now some heathen asshole in Congress is suggesting that they should be subject to even more blasphemous oversight.  

 

According to Rep. Paul Kanjorski (D) (PA-11), in mid-September of 2008, the United States of America came just three hours away from the collapse of the entire economy. In a span of 2 hours, $550 billion was drawn out of money market accounts in an electronic run on the banks.

Rep. Kanjorski: “It would have been the end of our economic system and our political system as we know it.”

Kanjorski’s bombshell begins to detonate at roughly 2:10 into the video.

Partial transcript below the fold.

In the big U.S. newspapers this afternoon are reports of former Federal Reserve Chairman Alan Greenspan’s appearance before the U.S. House Oversight and Government Reform Committee today.

The Washington Post reports Greenspan described the financial crisis a “once-in-a-century credit tsunami” and the Los Angeles Times adds Greenspan warns unemployment will rise.

“This crisis … has turned out to be much broader than anything I could have imagined … Given the financial damage to date, I cannot see how we can avoid a significant rise in layoffs and unemployment.”

According to The New York Times, Greenspan said he “made a mistake” in believing free markets could regulate themselves without government oversight.

On a similar note, the LA Times adds Greenspan “admitted that the crisis showed flaws in his strong free-market ideology”, but I don’t interpret him saying that at all.  

There are a couple of stories regarding the $700 billion bailout today that really should raise the eyebrows of Americans who have lived through and witnessed the Bush years. Especially taking into consideration the over-reliance on private contractors, financial mismanagement, and loose accounting practices in Iraq and elsewhere with taxpayer money that have been a hallmarks of the Bush administration.

The NY Times reports Treasury sets timetable to pick managers. “The Treasury Department put its $700 billion bailout on a fast track on Monday, asking companies to submit bids for running the system by Wednesday and announcing its plan to select winners on Friday.”

Yes, the Treasure Department will take only one day to review bids before awarding contracts. Hey, at least Treasury Secretary Henry Paulson didn’t just announce no-bid award to, say, Paulson’s old company, Goldman Sachs. See if this sounds familiar —

Administration officials plan to outsource almost the entire project, which will largely rely on “reverse auctions” in which the government accepts bids from financial institutions that want to sell their troubled assets.

The Treasury said it intended to hire one company as a “financial agent” to set up the basic system, which would include running the auctions, keeping track of the various portfolios and overseeing all the operational issues.

The Financial Times first reported in news that Wall Street banks are fighting for life early this morning that the U.S. Federal Reserve was making “it easier for financial institutions to access Fed liquidity by easing terms on its borrowing facilities and accepting a much wider range of assets as collateral.”

The Fed likely figured the shock of bank failure today was an excellent time to sneak in a regulatory change. The Fed “widened the set of assets eligible as collateral for loans of Treasuries to include all investment grade paper, and raised the size of these Treasury loans to $200bn.”

The Fed also suspended rules that prohibit banks from using deposits to fund their investment banking subsidiaries.

The NY Times reports that the Fed loosens standards on emergency loans. Not just loosen, but “dramatically loosen” their standards.

In an obscure but highly important announcement late Sunday evening, the Fed said it would let Wall Street firms post as collateral much riskier assets – including equities, junk bonds, subprime mortgage-backed securities and even whole mortgages – in exchange for emergency loans through the Primary Dealer Credit Facility.

The Fed created the emergency loan program in March, at the same time that it engineered the shotgun marriage of Bear Stearns by JPMorgan. In itself, the program marked a historic expansion of the Fed’s lending to cover investment banks rather than only commercial banks.

This morning, Treasury Secretary Henry Paulson formally announced his grand scheme to use America’s economic mess to consolidate power in the hands of the few, the economic pillagers at the Federal Reserve.

Under the guise of “increasing” regulation, Paulson’s scheme seeks to abolish the last vestiges of New Deal oversight on the U.S. economy and complete the deregulation of Wall Street. Paulson proposes nothing less than economic shock therapy to the U.S. financial sector. As The Guardian notes in its coverage of Paulson: “Big banks saw little to fear in the blueprint.”