The Fed has emerged as one of Wall Street’s biggest customers during the financial crisis, buying massive amounts of securities to help stabilise the markets...However, the Fed is not a typical market player. In the interests of transparency, it often announces its intention to buy particular securities in advance. A former Fed official said this strategy enables banks to sell these securities to the Fed at an inflated price.
This is the same Federal Reserve that doesn't want to be audited by congress. That would be too transparent.
The central bank’s approach to securities purchases was defended by William Dudley, president of the New York Fed, which is responsible for market operations. “We believe that opting for transparency is a greater good,” he said. “If we didn’t have transparency, we’d be criticised on other grounds.”...However, another official familiar with the matter said the central bank “has heard that dealers load up on securities to sell to the Fed. There is concern, but policy goals override other considerations.”
Yes, let's all express concern as our representatives funnel taxpayer dollars to incompetent bankers.
Barney Frank, chairman of the House financial services committee, said the potential profiteering may be part of the price for stabilising the financial system...“You can’t rescue the credit system without benefiting some of the people in it.” Still, Mr Frank said Congress would be watching. “We don’t want the Fed to drive the hardest possible bargain, but we don’t want them to get ripped off.”
Really? You mean there are people who work in corporations? Who knew. We're being robbed in broad daylight while the powers that be express concern. Whatever would become of those poor shrinking violets on Wall Street if we were to demand a fair deal? Why, they'd have to start making a profit in some honest way. Would they even know where to begin?
There will always be crooks on Wall Street, but when the Federal Reserve actively enriches them, and hides behind congress, it's time to end the Fed.
Posts
1 comment:
Excellent article. I agree that the Fed needs to go. It was the leading cause of the credit bubble, and now it is trying to recreate it after it has already blown up. This cannot succeed in the long run. But so far the Fed seems hell bent on its easy money policies to bail out Wall Street. So one of the few ways for the guy on Main St. to protect him or herself is to invest in gold related assets, which will benefit from all the money printing. Here are some additional articles on the gold price and the government's actions.
Post a Comment