I have been searching for updates on Bloomberg’s lawsuit seeking disclosure of collateral held by the Fed in exchange for a trillion plus in loans. Kudo’s to Bloomberg’s Mark Pittman for his coverage and efforts to bring accountability to the bailout process.
Here is a copy of the initial filing.
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My prediction?
The markets seizing up reflects markets working. Market’s will not trade when there is insufficient information to price accurately, when rules are not being respected and where fraud is present.
Fed Refuses to Disclose Recipients of $2 Trillion
Now that market participants understand that there is significant fraud, including collateral fraud, in the asset backed and related derivative markets, no one wants to trade. They can’t trade. Who knows how much anything is worth? And who can trust anyone to certify anything? They can’t. All they can do is to get the US Treasury and the Fed to promise it does not matter. Government guarantees price and performance when fundamental economics can not.
That means that the Fed will not permit full disclosure. Given what I have personally seen of the federal court process when the owners of the Federal Reserve Banks want to keep collateral fraud under wraps, the law does not matter — in cases like this, there is no law, That said, no amount of money and effort will be spared in the effort to achieve the appearance of the rule of law. So the spin will be interesting to watch.
Keep us posted if you see updates on this one.
Just heard you on Coast to Coast with Art Bell. Shouldn’t the regulations that were formulated under the FDR Administration be put more or less back in place….With even stricter accounting of the types of investments that are being made and how? It should also be obvious that our “dear” President Bush is more interested in saving the monied class than he is in saving the average worker ala Big 3 Car Maker bailout. To me that is nothing more than a union busting tactic on his part for his buddies in business. Those pesky unions are the cause of all this. Not the underhanded and far-reaching greed of Wall St. Insiders and Corporate Managers who seem to have gone out of their way to sink American business.
HI Catherine. I listened to your show last night on Coast to Coast as I have other times. I actually was one call from asking you my question…… What about gold confiscation?.. as they did once before. Its provisions are in the Patriot Act and I’m just wondering what you think about that eventuality?
Sincerely PAul
I’m listening to you at this very moment on C2C with Art Bell. I just wanted to mention that earlier today I was watching CNBC’s ‘Closing Bell’ with Maria Bartiromo. She casually mentioned that Citigroup got $351 Billion. They also printed this on screen with a graphic along with other bailout recipients like AIG, Fannie and Freddie.
$351 for Citigroup astounded me and I had never heard this before. The uproar was about AIG getting $150 billion last month. Bartiromo mentioned this really casually, so I googled it and came up with nothing. However I am very suspicicious that Citigroup was given $351 billion secretly by the Fed.
It would be interesting if you could find out more about this.