James Grant Says Bond Market Is `Desert of Value’

March 21, 2012 by · Leave a Comment
Filed under: Videos 

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I love James Grant (Interest Rate Observer), not that I agree with everything he says (but I usually do), but the respect I believe he gives the people that listen to him in the form of not pulling punches just because it coudl offend someon. One of the only serious, consistent and truthful (truth to power) commentators we have discussing financial, economic and monetarial issues today. Here is a treasure in my opinion and I hope even if you don’t agree with him, you respect that he is trying to give you the not so popular but much closer to actually truths then we usually get ever. This one of those cases where “you don’t know what you have til its gone”.

P.S. Jim, I didn’t know Bernanke was a spelling B champ, thanks for a little more depth into the man outside the basics. Kudos

Dear Bloomberg: You guys are killing me

October 12, 2011 by · Leave a Comment
Filed under: Opinion 

Seriously.  I am watching Bloomberg TV and they did their “fact check” segment for the GOP Presidential Debates.   I love the idea of that but you guys got your own reporting wrong while fact checking.  I am speaking about the Newt Gingrich fact check.  (Note:  I am not a registered with any political party, I pay attention to messages and policies regardless of affiliation).   You faulted him on his statement on the Federal Reserve and his claim of “secret bailout loans”.

First off, he got it wrong because it was MUCH MUCH BIGGER than hundreds of billions,  like maybe $16 trillion dollars.

More importantly, your reporters should do their own fact checking on the fact that BLOOMBERG HAD TO SUE THE FED to get these details.  If that is not secret then I don’t know what is.  So I would say Newt was correct that these were SECRET LOANS, because Bloomberg and Fox News had to bring a lawsuit and win to get these details.  Get your stuff together please, I really like your news network and your guests bring more hard hitting facts than any other major news outlet.

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Federal reserve finally reveals secret bailout loan details per judgement

April 1, 2011 by · Leave a Comment
Filed under: Legal News 

Remember, nothing is for free and this disclosure is not an exception.   It has been 2 years since this legal action start to get the secret bank bailout loans that were made during the financial crisis of 2008-present.  The U.S. Federal Reserve released the details per the judgment of the courts that has to do with the Bloomberg L.P lawsuit.  But now we have a law in place that starting in 2012, the Fed will be required to reveal these type of details in the future but with a mandatory 2-month delay.

What this means is now we have codified in law a delay on secret loans as public-private partnership makes on behalf of the U.S. Congress.   Who I add are not elected so we do not really know at all times which mandate they are following, full employment (pro-banks) or stable prices (pro-savers & investors).  We have basically codified secrecy in this part of our market system.  That gives great advantage to the organizations that are receiving this type of public support and harmful to  anyone who competes with these institutions and does not get the same favor (ie: WaMu, Lehman, Bear Sterns, etc.).  Not to say those companies I mentioned did not operate is a self-interested greedy manner but they did not get the red carpet treatment.

MSN Money – The Federal Reserve released thousands of pages of secret loan documents under court order, almost three years after Bloomberg LP first requested details of the central bank’s unprecedented support to banks during the financial crisis.

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Big News: Supreme Court tells Fed to release secret bailout loan details

March 21, 2011 by · Leave a Comment
Filed under: Legal News 

Over two years and finally some good news and in my opinion the right choice on this case.  If you have read any of my previous postings about the secret Federal Reserve (NY Fed) loans to banks (domestic & foreign).   The Federal Reserve tried to maintain that is was better to keep these secret to basically prop up the banking sector than to tell the truth and let us decide (with our deposits), which banks should succeed and who should fail.  THAT IS HOW A MARKET SYSTEM WORKS and that is suppose to be a cornerstone in America (at least I was taught that in public schools).

I will continue to reiterate the point that if we do not punish the reckless banks and prosecute any criminal activity, we will have another financial crisis sooner than later and it will be much worst because they know as long as its bug enough, the taxpayer will be here to bail them out.   Not in my country is what I say.

The Supreme Court not only denied the banks appeal but they did not even have comment, just do it.   On the other side, this could have serious consequences for the short term but it will be good for the long term.   I believe this release of information could be the needle that breaks the recoveries back.   Heed those words, you have been warned.

NY Times: The high court, without comment, refused to hear an appeal from an association of bankers trying to keep the information from becoming public.

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Fed Should Keep Emergency Lending Secret – Banks Vow Supreme Court Appeal

April 14, 2010 by · Leave a Comment
Filed under: Opinion 

This was an interesting article about the lawsuit Bloomberg LP filed against the Federal Reserve about the $2 trillion on secret loans they gave and to this day have not given any details.   As I have written here before, I believe this information should be public record and if the loans caused a run on some banks, it would be for good reason because they were insolvent at the time and should of been shut down and their assets sold off the the banks that were not in the same position.

Just as Walter Bagehot wrote in his seminal work “Lombard Street, workings of the London Money Market”,  bad  money will always chase away good money.  And bad banking practices will always chase away good  banking practices because the bad banks will provide the cheapest credit / money on the most favorable terms so there is not incentive for a borrower to go the more prudent bank that has higher standard.

This is why it is so important to make sure bad banks always go out of business and the prudent banks rise to the top to set the standard for all banking.

NOTE *IMPORTANT PLEASE READ*: Here is the most interesting part of the article and if you were not paying attention or you did not read into what they were saying and more important “not saying“.

Quote:  “The central bank contends that 231 pages of daily reports summarizing lending activity, which were prepared by the Federal Reserve Bank of New York for the Fed Board of Governors in Washington, aren’t covered by the FOIA (Freedom of Information Act). The statute obliges federal agencies to make government documents available to the press and the public.

Here is plan English the Federal Reserve is asserting they ARE NOT a Government Agency but actually a Private Banking Cartel (definition of cartel) that has a mandate from the U.S. government since 1913 to issue the U.S. Dollar as the sole Lender Tender.

BIG QUESTION?: Do we want to have a private institution have the ability with no oversight be able to have the monopoly to issue our dollar and to be able to help out their banking buddies with any amount of assistance they deemed necessary?  Please think about this for a bit before you answer.

If you have any question or want me to back up these claims, I am happy to provide many official references.   Please comment below, I am approving any comment, positive and negative.  Please back-up any claims so we can have a real discussion.  Slander will not be tolerated.

Bloomberg – The biggest U.S. commercial banks will take their fight against disclosure of Federal Reserve lending in 2008 to the Supreme Court if necessary, the top lawyer for an industry-owned group said.

Continued legal appeals will delay or block the first public look at details of the central bank’s $2 trillion in emergency lending during the 2008 financial crisis. The Clearing House Association LLC, a group that includes Bank of America Corp. and JPMorgan Chase & Co., joined the Fed in defense of a lawsuit brought by Bloomberg LP, the parent company of Bloomberg News, seeking release of records related to four Fed lending programs.

The U.S. Court of Appeals in Manhattan ruled March 19 that the central bank must release the documents. A three-judge panel of the appellate court rejected the Fed’s argument that disclosure would stigmatize borrowers and discourage banks from seeking emergency help.

Source

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