Bloomberg v. The Fed

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.

 

View a PDF 

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.

10 Comments

  1. Wow oh wow I guess the bottom has finally dropped, I don’t know what to say but my feelings have felt this coming for a long time. I trust my own feelings.

  2. Have you a map of who owns who? I understand that the banks towkow to the central banks and these are part private part federal/Government owned. But what are the connections who is higher in the network. It seems to me these people worship central control. So if that is correct is there a bank or entity that sits at the apex of all this stuff. And if there is such an entity are they more powerful than all the worlds Governments. If the laws are irrelevant in the above bloomberg/fed case, then maybe this is so. Would that not also then make all governments and politicians mere unknowing pawns. What a horrible thought.

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