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After Yesterday's Victory For Paul-Grayson, Is Bernanke's Confirmation Now In Jeopardy?
After yesterday's debacle for the Fed, could even more grey clouds be gathering for the Chairman? As readers will recall Alan Grayson recently presented several questions, the response to which would serve as a gating factor to Bernanke's reconfirmation. Alas, that initiative never appeared to get much traction. In fact upon questioning Chris Dodd said that Bernanke's confirmation was a done deal.
"I've indicated I want to be supportive. I think Ben Bernanke's done a very good job, particularly in the last year or so. I think that view is embraced by a lot of people," said Dodd, a Democrat.
"The chairman's not going anywhere," Dodd said.
Yet a recent interview by Mike Stark indicates that Mr. Dodd may have had a change of heart about the certainty of Mr. Bernanke's tenure, and is now voicing much less certainty about the continued tenure of the fiat money printer.
As the clip demonstrates, Dodd may be reeling under increasing Main Street pressure to not seem like the Fed puppet that Mr. Barney Frank has disclosed himself to be.
Mike Stark: “Is it a foregone conclusion that he’ll be confirmed?”
Senator Dodd: “Not necessarily, not necessarily, we’ll see how members react.”
Mike Stark: “What do you think his chances are?”
Senator Dodd: “Well I don’t know, as Chairman of the committee I don’t want to speculate how other members feel about it, we’ll see what happens.”
As a reminder Frank stated the following: "“It’s going to be seen as weakening the independence of
monetary policy with consequent negative implications. People are going to be worried
about the impact on the dollar, on the interest rate.” Of course, in reality there is absolutely nothing factual contained in Frank's statement, which is merely another escalation of the Mutual Assured Destruction doctrine, so well practiced by Wall Street, and finally getting adopted by Washington. Should the final Paul-Grayson bill pass in its current form, we expect nothing less than a resignation by Mr. Frank, followed hopefully by the resignations of his "supervisors", Mr. Geithner and Mr. Bernanke.
In the meantime, keep an eye out on future commentaries by Dodd and other members of our ruling "elite" vis-a-vis Bernanke and the Fed. If yesterday is any indication, the opposition of the majority of the public's opinion, especially if its finally bears fruit in a Fed transparency outcome, will be equivalent to political suicide for all those who have been supporting the Fed's desire to maintain its unprecedented secrecy.
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Occultic again, 11 years to the day of declaring a new world order (GB Senior) we had 9/11 and 555 days after we went to war with Iraq. They believe in the power of numerology, and many are malthusian. This probably sounds strange to those that have never studied the dark under belly.
Check out this link at ground zero of a ceremony to recreate the CBS logo also known as the eye of horus: http://www.youtube.com/watch?v=5ToJlsqyVdQ&feature=related
The all seeing eye is also on top of the pyramid on your currency.
Does anyone else want to punch the TV when Dennis Kneale is on?
Bernanke is going to be confirmed.
Chris Dodd is just making populist noise because he is in trouble coming into 2010.
Democrats are anxious about the prospects of five-term Sen. Chris Dodd in Connecticut, who trails one of his GOP opponents by 28 percentage points among independents in a prospective head-to-head matchup.(http://www.politico.com/news/stories/1109/29646_Page2.html)
It is Geithner that is the must vulnerable here. There is no way the democrats are going to make the same mistake the republicans did in 2006 (firing Rumsfeld the day after the got their clocks cleaned in the mid-terms). He will be the first major player in the Adminstration forced to fall on Obama's sword. Change you can believe2.0 going into the mid-terms.
As for Barney Frank, well we all know he is merely a marionette. One must ask what replacing Barney Frank accomplishes, absent replacing those yanking his chain?
Sadly, I concur. Frankster the running dog for the Banksters is just another Schumer (anyone remember the legislation leading up to the S&L meltdown ---- the Garn-St. Germain Depository Institutions Act of 1982 -- with Schumer's blessing).
But Bernanke really needs to go......
The picture of Geithner on the front page of the WSJ this morning is priceless.
Caption:
"The obsolete tool on the eve of retirement"
Lizzy hits the X ring.
"It should be noted that an overall final vote on financial regulatory reform from the Committee, expected today, was blocked, chiefly by members of the Congressional Black Caucus"
At the risk of being portrayed as a racist - which I'm not, I'm a researcher that looks for patterns - I did some digging on the above.
If you go to table 20 in this document (http://www.federalreserve.gov/monetarypolicy/files/monthlyclbsreport2009...) and look at page 14 of the document you will find this:
"On September 1, 2009, the following four non-
primary dealer broker-dealers were named as agents
for the TALF: CastleOak Securities, LP; Loop Capital
Markets, LLC; Wells Fargo Securities, LLC; and The
Williams Capital Group, LP. These agents, like the
primary dealers, will represent borrowers in accessing
the facility. The Federal Reserve anticipates that the
appointment of these agents will enable a broader
range of investors to access TALF financing."
The CastleOak, Loop Capital, and Williams Capital are all minority-led firms. More specifically the top executives, and presumably the founders, are African-American.
So the Congressional Black Caucus' "nays" on the Fed Audit Bill had nothing to do with the political environment or unemployment, as was previously speculated, and everything to do with who is the primary conduit of TALF loans.
some fun facts on james reynolds jr. : chairman of loop capital --
http://www.barackbook.com/Profiles/JamesReynoldsJr.htm
Sqworl I love your avatar.
It is a little freaky you should probably run for congress or have you been watching Project Runway again?
Make it work.
Thank you Gimp...I wanted an avatar that would make ppl's eyes pop! lol
Tonight at 12est..I will post a real picture of me..x
I'm looking for a real pic... I can't find it... where did u post it?
It's that little gap in the teeth that puts me over the edge...
I found this to be excellent commentary on the Fed from Hussman:
"The big picture is this. There is most probably a second wave of mortgage defaults in the immediate future as a result of Alt-A and Option-ARM resets. Yet our capacity to deal with these losses has already been strained by the first round that largely ended in March. The Federal Reserve has taken a massive amount of mortgage-backed securities onto a balance sheet that used to be restricted to Treasury securities. The purchase of these securities is reflected by a surge in cash reserves held by banks. Not only are the banks not lending these funds, they are contracting their loan portfolios rapidly. Ultimately, in order to unwind the Fed's position in these securities, it will have to sell them back to the public and absorb those excess reserves, so to some extent, the banking system can count on losing the deposits created by the Fed's actions, and can't make long-term loans with these funds anyway.
Increasingly, the Fed has decided to forgo the idea of repurchase agreements (which require the seller to repurchase the security at a later date), and is instead making outright purchases of the debt of government sponsored enterprises (GSEs such as Fannie Mae and Freddie Mac). Again, the Fed used to purchase only Treasuries outright, but it is purchasing agency securities with the excuse that these securities are implicitly backed by the U.S. government.
This strikes me as a huge mistake, because it effectively impairs the Fed's ability to get rid of the securities at the price it paid for them, should Congress change its approach toward the GSEs. It simultaneously complicates Congress' ability to address the problem because Bernanke has tied the integrity of our monetary base to these assets. The policy of the Fed and Treasury amounts to little more than obligating the public to defend the bondholders of mismanaged financial companies, and to absorb losses that should have been borne by irresponsible lenders. From my perspective, this is nothing short of an unconstitutional abuse of power, as the actions of the Fed (not to mention some of Geithner's actions at the Treasury) ultimately have the effect of diverting public funds to reimburse private losses, even though spending is the specifically enumerated power of the Congress alone.
Needless to say, I emphatically support recent Congressional proposals to vastly rein in the power (both statutory and newly usurped) of the Federal Reserve. Starting with the Bear Stearns deal, the Fed under Ben Bernanke has made a sharp and distinct departure from its historical role, in violation of its charter. As I noted when the bondholders of Bear Stearns were rescued, “The troubling aspect of the Fed's action was not that it lent to a non-bank entity. That ability is clearly authorized by Section 13(3) of the Federal Reserve Act. The problem is that it made its “loans” as “non-recourse” funding – meaning that it would not stand to be repaid if the collateral itself was to fail.” This is still what the Fed seems determined to accomplish."
http://www.hussmanfunds.com/wmc/wmc091116.htm
did you see this shit?
10% unemployment is this guy is going to filibuster any Fed audits? what a jackass. and traitor.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aJ26uaTZb8aU&pos=9
Judd Greg is a bought and paid for tool. All the tools will be standing on the floor of Congress spewing this public service announcement.
Unemployment is 20%
I don't trust people who place their first name last... BTW, Who names their kid Judd
I'm guessing Senators are salivating now at the impending influx of financial lobby dollars.
Tyler:
I saw these suspicious foreign spellings, "grey" and "ploughing", in two consecutive posts....it will really piss me off if the guy that founded the Fight Club throughout America is a Brit or at least, educated in the UK...that's pathetic...you probably have Ikea furniture in your closet too....
Non-Americans typically learn British English.
Ya. Those damn australian wankers.
this bill is supported by over 70% of americans. it was drafted by a republican and a democrat. I think it could be a real catalyst for change and an election issue. the problem is since it isn't associated with a party I don't know how much use it will be. I will tell you this, I ain't voting for someone who doesn't support a full audit of the fed
Did you read the Bloomberg article where Senator Gregg makes the remark about "pandering to the public"
These assholes make me sick--who the F**K do they think they represent??? Oh I forgot, not us. It is every ZH readers duty to get out and vote these whores out of our government.
On a calmer note I did happen to sit next to Senator Sessions on a flight last year in coach (can you believe it)...planes were full last year. He seems to be one of the few Senators who is actually concerned about the Bankstas, FEDs and the dwindling middle class. Nice guy.