Nov. 10 (Bloomberg) — The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral. Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn’t require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.
“The collateral is not being adequately disclosed, and that’s a big problem,” said Dan Fuss, vice chairman of Boston- based Loomis Sayles & Co., where he co-manages $17 billion in bonds. “In a liquid market, this wouldn’t matter, but we’re not. The market is very nervous and very thin.”
Bloomberg News has requested details of the Fed lending under the U.S. Freedom of Information Act and filed a federal lawsuit Nov. 7 seeking to force disclosure. “It’s your money; it’s not the Fed’s money,” said billionaire Ted Forstmann, senior partner of Forstmann Little & Co. in New York. “Of course there should be transparency.” Federal Reserve spokeswoman Michelle Smith declined to comment on the loans or the Bloomberg lawsuit. Treasury spokeswoman Michele Davis didn’t respond to a phone call and an e-mail seeking comment.
President-elect Barack Obama’s economic adviser, Jason Furman, also didn’t respond to an e-mail and a phone call seeking comment from Obama. In a Sept. 22 campaign speech, Obama promised to “make our government open and transparent so that anyone can ensure that our business is the people’s business.”
Gas prices are down, we have a new President-elect, (most) everyone is upbeat, but we’ve let our guard down. Okay Mr. Obama, this would be a good time to step in if you want there to be anything left for you to run.
And how many people, even those that should, know that the only way to get rid of Bernanke is to impeach him?
Two trillion dollars? We are almost talking about real money.
There’s clearly a back story to the bailout that’s yet to be told. When it happened and how it happened are very suspicious.
The failings of a two party system.
To use the old 1940’s expression, any way you slice it it’s still baloney.
You might want one of these:
CARL SAGAN’S BALONEY DETECTION KIT
http://users.tpg.com.au/users/tps-seti/baloney.html
Weasel words – for example, use of euphemisms for war such as “police action” to get around limitations on Presidential powers. “An important art of politicians is to find new names for institutions which under old names have become odious to the public”
Notice it was a rescue, a bailout, a stabilization, a whatever. I’m wearing a fleece right now, so I’m already fleeced here. I wonder what the new name will be. It looks like we are heading back to New Deal acronyms. Maybe it’ll be the National Banking Act or NBA since Obama likes basketball.
Scary. It’s like one of those old b movies about the end of the world. First some egghead discovers imminent planetary doom, then the government starts to work in secret to save the world (or at least the powerful and priveledged). In order to finance such a big operation in secret they need to come up with some big economic crisis they need to handle and cash starts to disappear in a BIG way. Too bad the truth is the people who should be looking out for the public welfare have other more powerful masters.
AIG is now BIG, the Baloney Insurance Group or Bush Insurance Group depending on how you slice it. More losses are ahead and cash is burning. When something fails in business, we get rid of it. In government it gets bigger and more funding.
Neither Obama or his people will “step in”. Both parties are in this together don’t forget.
They tap your phones, read your email and are now buying the banks.
I am not holding my breath that the Dems will roll back the atrocities the Repubs committed to civil liberties and ‘free markets’ in the name of 9/11 and now the economy. That’s just too much power to let go of.
When will the American sheeple wake up and demand both parties get back in line? They are supposed to be working for us remember.
Why would Obama ‘step in’? He can’t wait for his blank check to spread around.
Wall Street Journal , Wednesday 11-5-08, Deals & Deal Makers section.
Title of article: A Bear Stearns ‘Risk’ Expert Joins the Fed”
Summary, with verbatim quotes: The Federal Reserve Bank of NY has hired Michael Alix, as a senior vice president in the Bank Supervision group. Mr. Alix was “chief risk officer from 2006 to 2008”. he was also “global head of credit risk management from 1996 to 2006 at Bear, the NY Fed said.
Bear was the “Wall Street firm it (the Fed) was forced to save last spring”.
“The Fed is not only the lender of last resort, it’s also the employer of last resort”, said Paul Kasriel an economist at Northern Trust.
In other words, they hired the guy who was supposed to prevent exactly that kind of catastrophe.
What I take from this:
Just another fear based stampede aided and abetted by the big money Republican Bush administration and their cronies. Can you imagine, Paulson’s entire plan was three pages long! How could they keep a straight face?
Careful consideration of the issues and possible cures would not have caused the end of the world. Now, they are laughing up their sleeves – again.
Mail me a penny postcard when any president-elect has the authority to “step in”.
Of course, the nutballs whining about that – don’t really need a new excuse for whining. It’s part of their DNA, by now.
damn liberal media! who are they that they think they have the right to know where taxpayer money is going? haven’t they been paying attention the last 8 years?
this must be Obama’s fault ….
Obama can’t step up until he is in office. If the records aren’t transparent then he can call his Attorny General and somebody better have the right answers or they can tell it to a judge.
You’d think these guys could afford some hair plugs.
Step 1: round up the CEOs (and any former CEOs who quit in the last 2 years) of all the large investment banks and insurance companies.
Step 2: shoot them.
Step 3: announce that $billions will be made available to any banks and insurance companies that need it, just as soon as they get replacement CEOs.
Step 4: GoTo Step 1
#10. “Mail me a penny postcard when any president-elect has the authority to “step in”.
Of course, the nutballs whining about that – don’t really need a new excuse for whining. It’s part of their DNA, by now.”
Well “moss” last time I checked he was still a Senator…..right? Does not a Senator have the power to step in, or did I just answer my own question. Or does he give that up because he is Prez-elect?
No Balogna for you!
14: +
Repukes CONTINUE ***LOOTING IN ALL DIRECTIONS*** EVEN WITH JUST DAYS LEFT IN THE MIS-ADMINISTRATION OF DUMBYA BUSH AND PRICK CHENEY !!! They need to be ARRESTED AND JAILED – NOW !!!
I can’t wait to short the USD. The time is near. I can feel it.
From the AP, “China’s government said Tuesday that ensuring the country’s economic stability is the most important step it can take to tackle the global financial crisis, suggesting it might resist pressure to contribute to a global bailout fund…”
This is the first I’ve heard of a global bailout fund. Must be some pressure group behind it.
Why is this a surprise to anyone? They don’t care about how much taxpayer money they use, they have to look out for their bosses. If cared about the taxpayer, they would start saving by forgoing the bottled water (note photo) for tap. The fun thing about all this is that people voted out a bunch of those bafoons who went along with the scheme. The very few democrats and republicans who voted against the bailout, got re-elected.
“Okay Mr. Obama, this would be a good time to step in if you want there to be anything left for you to run. ”
Is there anyone on this blog who thinks Omama is anything other than a typical Chi politician?
#21 – Paddy-RAMBO
Most people on this blog, most people in America, and most people in the world think that.
It’s only “mavericks” like you who don’t.
# 22 Mister Mustard said, “It’s only intelligent people like you who don’t.”
Thanks.
Oh, let me know when Omama makes these guys ‘fess up.
If I had this in $1 bills it STILL wouldnt be Good for TP…It might LAST awhile..
How about $100 bills??
Bush, Cheney, and the Rukes STILL GIVING THE FINGER TO AMERICA:
http://tinyurl.com/6cxk3a
# 27 JimD said, “Bush, Cheney, and the Rukes STILL GIVING THE FINGER TO AMERICA: http://tinyurl.com/6cxk3a”
Wow! I still can’t believe the Dems passed this legislation.