Futures Swoon As Senate Accepts Expanded Fed Audit
The EURJPY, and its immediate computerized secondary derivative, the general market, its taking a nosedive.
The reason, as HuffPo's Ryan Grim reports, is that the Senate has now accepted an expanded Fed audit. As usual, we will believe it when we see the full list of banks bailed out by the Fed, the collateral they pledged, the cash they received, the amount of bonus paid out, the Fed credit facilities involved, the total taxpayer money lost and never to be recovered, etc. Which is why we don't buy it for a bit, and we are fairly confident that Chris Dodd is blatantly misrepresenting reality, when he tells the House panel that "the Senate will accept an expanded Federal Reserve audit proposal from the House as part of Wall Street conference committee deliberations."
The House proposal allows repeated future audits of discount window and open market transactions, whereas the Senate proposal had only allowed a one-time audit.
The Senate's provision had already been stronger than what the Federal Reserve and Treasury Department had previously been willing to accept.
The details of the final proposal are still being worked out, but momentum is with advocates of Federal Reserve transparency. Depending on the specific language, however, Fed critics are worried the House proposal will still allow the Fed to keep information secret by keeping certain operations ongoing.
Chris Dodd (not to mention the congressman from recently delisted HFT sweetheart Fannie Mae, Frank) whose annuity is contingent on preserving the Fed's status quo, would be the last person to allow the Fed to lose its position in the shadow oligarchy, and open up its books to the general population, whereby even a cursory analysis by a 3rd tier powerpoint-happy blogger would expose the Fed's chairman as liable to treason proceedings. Which is why we advise readers to keep a track on the E&Y FX rate: once the smoke clears, it should become perfectly obvious that Dodd has done nothing less than what his moneyed masters have demanded of him, yet presented in a tidy little package. At the end of the day, the Fed will not lose its grip on the ponzi until the pitchforks come swinging. Alas, for that to happen, one can only hope that AT&T keeps the preorder block on the iPhone 4 for at least a few more months. At that point, no matter what the doctored CPI is, the day or reckoning will finally be at hand.