Bernanke’s efforts to limit transparency at the Federal Reserve

[WhiskeyGirl]

Even now, on any given day, one is more likely to read about Ben Bernanke’s efforts to limit transparency, refusing to acknowledge the American taxpayer’s right to know, while what has already been revealed suggests Bernanke himself may have been less than candid, most likely including in testimony before Congress. Given that so many Americans continue to feel the pinch of their government’s past economic transgressions, spurring much of this calamity through now dubious housing legislation, it would be a positive development for the American media to demonstrate just half the curiosity they’ve demonstrated when it comes to where every captured terrorist in the world my have been held, or treated, over time.

    Fed officials have claimed they did not know of the need for large-scale intervention in the financial markets until autumn 2008. Ben Bernanke, Fed chair, also testified that “The only way we could have saved Lehman would have been by breaking the law.” Yet the Fed’s new spreadsheets belie these claims. The data show the Fed was lending prolifically abroad in 2007, and then domestically, to investment banks – including Lehman – in early 2008.

    This has been a big week for transparency. But whereas the WikiLeaks cables may have revealed too much, the Fed’s new data have revealed too little. We know now the Fed acted earlier, and with wider scope, than was previously understood. But without more detail about collateral, the case for its actions can still not be properly judged. Nevertheless, even these incomplete disclosures suggest that perhaps, during the next crisis, Fed officials will think more carefully about making loans they know will see the light of day. As US supreme court justice Louis Brandeis noted, sunlight is the best of disinfectants.

read more here - http://bigjournalism.com/driehl/2010/12/03/the-press-slept-as-fed-spent/

Did anyone notice those banks were underwater? 

Why should there ever be a 'next crisis'?

I have to wonder today, what really caused interest rates of 18% in the 80's?  At that time, nice homes could be bought for about $50,000.

Who made all the money?  Who'll make the profit when interest rates rise to those levels again?  Folks, big banks, hedge funds, and foreigners who get cheap or no cost money from the Fed? 

Why can't Main Street get no cost money too?  Lend it to big banks and foreigners at high interest rates?

Does the Fed give cheap money to those who collaped our economy?  Banking system?   Didn't anyone look at the financial statements?

That seems a little twisted - just my humble opinions.

[WhiskeyGirl]

Boehner to Protect the Fed?

With Republicans taking control of the House in January, long-time Federal Reserve critic Rep. Ron Paul is in line to take over chairmanship of the House Financial Service Committee’s Subcommittee on Domestic Monetary Policy and Technology.  This is the subcommittee with direct oversight of the Federal Reserve.

The thought of having some actual oversight of the Fed is apparently making Wall Street and the rest of the banking industry nervous.  Recent disclosures of Fed lending to foreign banks and Wall Street did not help the public image of either Wall Street or the Fed.  With Congressman Paul pushing for a full audit of the Fed, it is likely even dirtier secrets of the Fed may come to light.

So where have the Fed and Wall Street turned for protection?  According to Bloomberg, the Fed’s new protector might be incoming House Speaker John Boehner.   Next week, House Republicans meet to select their committee and subcommittee chairs.  Bloomberg sources report that, at the request of the major banks, Boehner is looking for avenues to either deny Paul that subcommittee chair or to restrict his ability to oversee the Fed.

...I believe this will be a real test of Boehner:  Does he choose to rein in Ron Paul or rein in the Federal Reserve?

read more here - http://www.cato-at-liberty.org/boehner-to-protect-the-fed/

Why isn't the only choice serving "We the people..."?

Shining some light on the secret wheeling and dealing?

Business as usual?  More welfare trinkets,  poverty, joblessness, homeless, collapsing eonomy and dollar for Main Street?

Ron Paul or the Fed, which choice is likely to give Americans a new deal?

[WhiskeyGirl]

American Taxpayers Should Not Bail Out the European Union

Unfortunately, it appears that all of us need to pay closer attention to this issue. The Obama Administration apparently thinks American taxpayers should subsidize European profligacy. Here’s a passage from a Reuters report about a potential bailout for Europe via the IMF.

    The United States would be ready to support the extension of the European Financial Stability Facility via an extra commitment of money from the International Monetary Fund, a U.S. official told Reuters on Wednesday. “There are a lot of people talking about that. I think the European Commission has talked about that,” said the U.S. official, commenting on enlarging the 750 billion euro ($980 billion) EU/IMF European stability fund. “It is up to the Europeans. We will certainly support using the IMF in these circumstances.” “There are obviously some severe market problems,” said the official, speaking on condition of anonymity. “In May, it was Greece. This is Ireland and Portugal. If there is contagion that’s a huge problem for the global economy.”

This issue will be an interesting test for the GOP. I think it’s safe to say that the Tea Party movement didn’t elect Republicans so they could expand the culture of bailouts – especially if that means handouts for profligate European governments. Some people will argue that American taxpayers aren’t at risk because this would be a bailout from the IMF instead of the Treasury. But that’s an absurd and dishonest assertion. The United States is the largest “shareholder” in that international bureaucracy, and there’s no way the IMF can get more involved without American support.

read more here - http://www.cato-at-liberty.org/american-taxpayers-should-not-bail-out-the-european-union/