The Federal Reserve requested a U.S. appeals court to block a ruling that would force Ben to reveal his dirty little secrets regarding the identity of financial firms that allegedly would have collapsed without government money.
During Round 1, Judge Loretta Preska stated in a 47 page ruling; “Conjecture, without evidence of imminent harm, simply fails to meet the board’s burden of proof”. You see, Ben Bernanke and the Board of Governors argued during Round 1 “on how a borrower might enter a downward spiral of financial instability if its participation in the Federal Reserve lending programs were to be disclosed”. Grandpa Kudos’ to Judge Preska.
These borrowers (a.k.a. Wall Street greedy financial institutions) were already in a self-inflicted downward spiral. Ben is noted for his academia on the Great Depression. Guess what Ben; the drought was a significant factor of the Great Depression. This financial melt down had nothing to do with dust and tumbleweeds blowing around Wall Street. This time around, the downward spiral was 100% greed and fiscal irresponsibility.
Ben, you and Greenspan neglected to implement or administer any credible policies in an effort to maintain national financial and economic security. Has the concept of a proactive approach been discussed? One could argue that since the Federal Reserve controls the money, we need banks because…..
ROUND 2 Federal Reserve Argument: “The board’s ability to administer lending programs crucial to maintaining national financial and economic stability will be severely undermined if lenders won’t come to the regional Federal Reserve Banks for their funding needs, particularly in time of economic crisis”.
Severely undermined! You have sadly undermined the entire middle class while placing an immoral fiscal burden on our children and grandchildren.
The Federal Reserve balance sheet doubled in less than 16 months and now sits at roughly $2.2 trillion. The real truth (if you can handle the truth) is your need to keep your sordid little secrets so no one has an opportunity to witness the debris you consider assets.
Your balance sheet is roughly a 149.4 mile stack of $1,000 bills. If you knocked the stack down, you would drive by $1,000 bills from Chicago, IL to Madison, WI and then walk another 2 miles picking up bills along the way. If the Federal Reserve were to liquidate these “assets” tomorrow would the drive last to Rockford, IL?
It is time the Federal Reserve “buck” up to the financial community and quit playing Russian roulette with our kids and grandkids futures.