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"Have The Federal Reserve Or Prime Brokers Ever Tried To Manipulate The Stock Market?"

Tyler Durden's picture





 

Alan Grayson: I would like to know whether it is within the Federal Reserve's legal authority to try to manipulate the stock market or the futures market.

Federal Reserve GC Scott Alvarez: I don't believe the Federal Reserve tries to manipulate the stock market...(Yoda: Do or do not, there is no try.)

Alan Grayson: Does the Federal Reserve actually possess all the gold that's listed on their balance sheet.

Scott Alvarez, doing a classic poker body language tell, and taking his time: Yes...

Alan Grayson: Who actually executes the trades for the Federal Reserve in the markets?

Scott Alvarez: The Federal Reserve Bank of New York, which executes trades through Primary Dealers.

Alan Grayson: Can you name one Primary Dealer?

Scott Alvarez: JP Morgan Chase

Alan Grayson: Do you mind if we have a GAO audit to see if there has been front-running or insider trading by them? Do you mind? Is that ok with you?

Scott Alvarez: I am not sure if I have that authority...

 

 


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Fri, 09/25/2009 - 12:25 | Link to Comment ghostfaceinvestah
ghostfaceinvestah's picture

I have these proceedings playing in the background at work.  EVERY American should be listening to this.  The committee seems to be learning.  The issue of this problem going back to the bailout of LTCM has even come out (of course it is before that, but at least they are not blaming it on the failure of Lehman).  They are talking about Hayek, Mises, etc.

Fri, 09/25/2009 - 12:30 | Link to Comment Gilgamesh
Gilgamesh's picture

Huh, is there some kind of hearings going on today?  All I can see in the news is Iran and G20.  I'm sure if there were important hearings going on, it would be all over the corporate media...  Surely just a coincidence, the timing of news today - and the market selling off.

Fri, 09/25/2009 - 12:35 | Link to Comment koaj
koaj's picture

i wonder if cnbc is live streaming this thing also or are they running a special Kneale/Kudlow Power Lunch?

Fri, 09/25/2009 - 12:38 | Link to Comment ghostfaceinvestah
ghostfaceinvestah's picture

You wouldn't know there was a hearing based on the 12 people in the room, but there is some good stuff being said.

I think the direct correlation is between the selloff and the slowdown in MBS money printing.

http://www.newyorkfed.org/markets/mbs/

$25B last week, again.  With 6 months to go now, instead of 3 months, buying should slow down to $12B a week.  Is that enough in and of itself to starve the equity markets of much-needed liquidity?  Sad comment on the state of the market if that is the case.  And scary to think what will happen with UST buying stops, and then MBS buying stops in March.

S&P 500 @ 500 ahead?

Sat, 09/26/2009 - 11:05 | Link to Comment Anonymous
Sat, 09/26/2009 - 12:58 | Link to Comment Anonymous
Fri, 09/25/2009 - 12:48 | Link to Comment AndItsGone
AndItsGone's picture

 Austrian economics going toe-to-toe with the kleptocracy in an open session of Congress. The proton torpedoes are coursing through the veins of the Death Star.

Fri, 09/25/2009 - 15:14 | Link to Comment h4rdware
h4rdware's picture

There was another good clip later on - the testimony of Tom Woods of the Mises institute. It didn't make its way onto youtube unfortunately but it was definitely worth watching if anyone can unearth it. The testimony itself can be found on mises.org but the section extended beyond it.

Fri, 09/25/2009 - 23:45 | Link to Comment Fish Gone Bad
Fish Gone Bad's picture

If anyone wants to send Grayson their ideas or questions, here is his page where you can send input: http://action.firedoglake.com/page/s/1207hearing

 

As usual, let as many people know as possible.  If you have teenagers, have them post a myspace bulletin and ask others to repost it.  After some time goes by, have them delete the posting, and then re-post it.  Doing this trick about 10 times over a day can really get a message out.

Fri, 09/25/2009 - 12:26 | Link to Comment skeptic_ill
skeptic_ill's picture

Alan Grayson: Mr. Alvarez, would you like to take a moment to change your undergarments?

Scott Alvarez: No thank you Mr. Grayson, I'm wearing Oops I Pooped My Pants

Fri, 09/25/2009 - 14:45 | Link to Comment Argos
Argos's picture

Not a very strong performance for the head lawyer.  He reminds me of Barney Fife.

Fri, 09/25/2009 - 15:15 | Link to Comment MsCreant
MsCreant's picture

Remember, the Head Lawyer is the one with the knee pads.

Fri, 09/25/2009 - 16:01 | Link to Comment Anonymous
Fri, 09/25/2009 - 12:29 | Link to Comment Altan311
Altan311's picture

Absolutely mind blowing stuff, Grayson seriously dropping some hammer blows, and will someone please get Alvarez a body language coach? I keep thinking of that scene from ants when the foot comes down...

Fri, 09/25/2009 - 13:05 | Link to Comment Anonymous
Fri, 09/25/2009 - 15:17 | Link to Comment MsCreant
MsCreant's picture

Possibly a fair observation. What are we not attending to then? Direct us simpletons.

Fri, 09/25/2009 - 13:48 | Link to Comment Cow
Cow's picture

He's got the same body language coach as Timmay Geithner

Sat, 09/26/2009 - 13:52 | Link to Comment Anonymous
Fri, 09/25/2009 - 12:29 | Link to Comment Art Vandelay
Art Vandelay's picture

Every time I watch these hearings, I keep hoping that a few of these other putzes would simply shut their traps and cede their time to Grayson.  Imagine what he could do with 20 or 30 minutes, instead of just 5.

Fri, 09/25/2009 - 12:35 | Link to Comment Anonymous
Fri, 09/25/2009 - 13:08 | Link to Comment gmrpeabody
gmrpeabody's picture

+10

Fri, 09/25/2009 - 13:49 | Link to Comment Cow
Cow's picture

Agreed.  What is more important than that line of questioning?  Let him finish.

Fri, 09/25/2009 - 23:39 | Link to Comment Missing_Link
Missing_Link's picture

Yep.  Why can't the Republicans ask these kinds of questions?  Makes me ashamed of my party.

Fri, 09/25/2009 - 12:31 | Link to Comment andrew123
andrew123's picture

Frankly, I thought Grayson sounded like a simpleton.  Instead of asking broad questions like "has the Fed ever manipulated the stock market" and then saying "I think you know what I mean", he should have asked very specific questions:  Has the fed ever directly or indirectly bought us equities or us equity index futures?  Has the fed ever loaned money against equities or equity futures?  Has the fed ever made guarantees to any other party regarding its purchaaes of equities or equity futures, etc."  Any pronoucnement of interst rate or manitary policies could have an indirect effect on equities, so I think Grayson's question was far too broad.  I appreciate the work he is doing, but I though he came across too simplistic.  On another matter, who was the unprepared idiot that asked Alverez all the basic points about the Fed (white guy, black hair)?  He was sitting behind a a plack that said Wilson, but the only Wilson that is on the committe, doesn't look like the guy on the web, and his office said he was not in attendence.

Fri, 09/25/2009 - 12:39 | Link to Comment earnyermoney
earnyermoney's picture

I believe the camera angle is providing an optical illusion. It is really apparent for members sitting on the outter edges of the dias. Most likely, Wilson sits adjacent to the person of interest.

Fri, 09/25/2009 - 12:41 | Link to Comment ghostfaceinvestah
ghostfaceinvestah's picture

I had the same initial reaction, but you have to remember that part of this is theatre.  Grayson knows this clip will be posted on YouTube and replayed. It has to be kept simple for the people to understand.

I don't trust Grayson as much as say Ron Paul, but whatever it takes, breaking down the Fed is going to take a lot of doing.  The last guy who did it (Andrew Jackson) had to fire several of his cabinet to get it done.

Fri, 09/25/2009 - 13:11 | Link to Comment Altan311
Altan311's picture

Don't forget the assasination attempts by supposed Rothschild agents. Jackson was a horrible racist man who drank too much and abused minority groups for sure, but when they aked him on his deathbed what he was most proud of he said simply "I killed the bank"

fuck yeah

Fri, 09/25/2009 - 14:48 | Link to Comment Anonymous
Fri, 09/25/2009 - 19:17 | Link to Comment Anonymous
Sat, 09/26/2009 - 03:33 | Link to Comment Anonymous
Fri, 09/25/2009 - 13:22 | Link to Comment pigpen
pigpen's picture

Dylan and Ron Paul skewer the FED on MSNBC yesterday.

"We should never be fearful of the truth"

http://www.youtube.com/watch?v=GZ5e5MfEY2o

Fri, 09/25/2009 - 12:41 | Link to Comment I need more cowbell
I need more cowbell's picture

Perhaps a simpleton to you, but in the land of village idiots and corrupt bought-offs, Congress, he sounds like Atilla the hun to me.

Fri, 09/25/2009 - 13:27 | Link to Comment Village Idiot
Village Idiot's picture

I concur.

Fri, 09/25/2009 - 12:46 | Link to Comment Anonymous
Fri, 09/25/2009 - 12:59 | Link to Comment RagnarDanneskjold
RagnarDanneskjold's picture

Glad to see others saw that. A competent lawyer will never step into an open ended question. I didn't even know what Grayson meant, at first it sounded like he meant direct intervention and then he seemed to back off. When the lawyer started talking about interest rates, Grayson didn't differentiate. Well played by the lawyer. It made Grayson appear ignorant, which is the Fed's goal.

If it's political red meat for the simpletons, Grayson should realize that there are non-simpletons out there. 

Fri, 09/25/2009 - 19:25 | Link to Comment Anonymous
Fri, 09/25/2009 - 19:54 | Link to Comment Anonymous
Fri, 09/25/2009 - 12:35 | Link to Comment ghostfaceinvestah
ghostfaceinvestah's picture

http://www.newyorkfed.org/markets/mbs/

$25BBBBB again this week.

Next week (starting yesterday) is when purchases are supposed to slow.  Do you think we will actually see a slowdown?

Note the disbursement between purchases of Fannie/Freddie paper versus Ginnies.  Ginnies have nearly the market share of Fannie/Freddie, but have full faith and credit backing.

What will happen to the market for Fannie/Freddie's if the Fed stops buying.

How much is this bailout of Fannie/Freddie really costing us, and why has there been no move to reform them?

Why are they not just rolled into the FHA?

Fri, 09/25/2009 - 12:42 | Link to Comment mbielik24
mbielik24's picture

If I'm notmistaken, they would have to raise the debt ceiling (a few trillion) to take FNMA, FHLMC on their books.

Sat, 09/26/2009 - 00:30 | Link to Comment Anonymous
Fri, 09/25/2009 - 13:02 | Link to Comment SDRII
SDRII's picture

ghost trying to piece together the implicationt hat mbs buying frees up cash for PDs to buy the longer dated treasury auctions rince wash repeat. that said any thoughts on the repo implciations of flooding the market with collateral to the MM? Liked the comment the PDs don;t have the balance sheet for such a move?

Fri, 09/25/2009 - 12:35 | Link to Comment Anonymous
Fri, 09/25/2009 - 12:38 | Link to Comment JohnKing
JohnKing's picture

Maximize employment, stabilize prices..make our buddies rich. Psycho-bankers!

Fri, 09/25/2009 - 12:38 | Link to Comment Bolweevil
Bolweevil's picture

"Save the unfortunate rhetorical flourishes for us (congress), that's what we get paid for."

Barney Frank

Fri, 09/25/2009 - 13:08 | Link to Comment Rusty_Shackleford
Rusty_Shackleford's picture

I know.

 

What a f-ing douchebag.

 

Fri, 09/25/2009 - 13:41 | Link to Comment Anonymous
Fri, 09/25/2009 - 15:26 | Link to Comment MsCreant
MsCreant's picture

Massengill disposable douche. Re-elections you know.

Fri, 09/25/2009 - 20:52 | Link to Comment Hephasteus
Hephasteus's picture

I'm going to go with dual purpose douche bag colostemy bag.

Fri, 09/25/2009 - 12:39 | Link to Comment chindit13
chindit13's picture

While that was a good exchange, I wish Grayson had been more pointed and just asked, "Has the Fed engaged directly or through a proxy in any buying of equities or futures in the last year?"

Another interesting moment was when Watt demonstrated why democracy, as wonderful as it is, is fraught with danger in that it might lead to the inmates running the asylum.

Of course in the end we all know that everyone in the Fed is honorable and beyond reproach, and that we should just mind our own goddamn friggin business and let these honorable people handle trillions of dollars with a small select group of firms without any transaction open to the full light of day.  Taxation without illumination.

 

Fri, 09/25/2009 - 12:39 | Link to Comment Anonymous
Fri, 09/25/2009 - 19:53 | Link to Comment Uros Slokar
Uros Slokar's picture

As always here at ZH, love the history lessons. Keep them coming.

Fri, 09/25/2009 - 12:39 | Link to Comment You Cant Handle...
You Cant Handle the Truth's picture

Grayson needs to work on his stage presence.  His expression, voice, posture ... they make the mood confrontational beyond the content of the questions alone.  If you want to obtain a moment of candor from an attorney like Alvarez, you're going to need to do better than that.

Also, some of the questions were profoundly ham-handed.

BUT, with that said, it's nice to see a public servant like Grayson doing his job.  Kudos to him.

Fri, 09/25/2009 - 13:10 | Link to Comment shargash
shargash's picture

"...a moment of candor from an attorney..."

Surely, you jest.

Fri, 09/25/2009 - 23:56 | Link to Comment Hephasteus
Hephasteus's picture

Disagreement heiarchy. People not only apply it to arguements they apply it to the people behind the arguements.

http://www.kontraband.com/pics/12696/Disagreement-Hierarchy/

Thank you for bringing superficiality to this subject. I know it's all you can do. After Grayson is finished pulverizing everyone who can't refute the central point. I'm sure he'll stop by for some style coaching.

 

Sat, 09/26/2009 - 15:10 | Link to Comment You Cant Handle...
You Cant Handle the Truth's picture

Hi, welcome to politics and media.  You must be new here.  Enjoy what is obviously going to be a short stay once reality settles in for you.

Fri, 09/25/2009 - 12:42 | Link to Comment SilverIsKing
SilverIsKing's picture

Grayson is da MAN!

Fri, 09/25/2009 - 13:07 | Link to Comment Careless Whisper
Careless Whisper's picture

Indeed, I'm almost ready to log on to his web site and make a contribution.

Grayson: I said manipulate the stock market, or the futures market; wouldn't we want to know?

Alvarez: (silence)

Grayson: Yes or No?

Alvarez: Could you define what you mean by ...

Garyson: I think you know what I mean Mr. Alvarez. Now wouldn't it be very helpful to have a GAO audit on that subject? Wouldn't it?

Alvarez: I don't know what it is you're seeking to audit.

This witness was sliced and diced. Pathetic.

I find it unbeleiveable that the lawyer for the Federal Reserve Bank refused to deny that the Fed could legally manipulate the stock market.

Fri, 09/25/2009 - 13:27 | Link to Comment Anonymous
Fri, 09/25/2009 - 12:44 | Link to Comment Anonymous
Fri, 09/25/2009 - 12:55 | Link to Comment TwoJacks
TwoJacks's picture

They're in recess right now. here's your link for when they return:

Watch the hearing LIVE NOW

Fri, 09/25/2009 - 13:02 | Link to Comment Anonymous
Fri, 09/25/2009 - 13:14 | Link to Comment gmrpeabody
gmrpeabody's picture

much grass!

Fri, 09/25/2009 - 12:44 | Link to Comment digalert
digalert's picture

sans Paulsen and Grayson, we have idiot representatives. Uncle Ben needs to be in jail, but noooo...

We'll have house chair announce "this is a fishing expedition and pointless" while asking the FED what kind of turf to use in their newly expanded playground. While Barnacle Frank motions to erect a statue of Bernanke.

Fri, 09/25/2009 - 13:02 | Link to Comment Anonymous
Fri, 09/25/2009 - 13:30 | Link to Comment Anonymous
Fri, 09/25/2009 - 12:47 | Link to Comment lieutenantjohnchard
lieutenantjohnchard's picture

the fed situation will take time to play out. the politicians (even those on the take) and the public (those that count) have the fed, banks, sec (et al) and the treasury in the crosshairs.

as it takes more and more frn coupons in exchange for bread the heat is going to be ramped up.

i expect a very hostile reception for the chopper chairman pilot going forward.

a very public, failed auction is but a matter of time.

Fri, 09/25/2009 - 12:48 | Link to Comment Cocktosen
Cocktosen's picture

No more words.  I want to see action!  Dammit!

Fri, 09/25/2009 - 12:48 | Link to Comment Anonymous
Fri, 09/25/2009 - 12:49 | Link to Comment Anonymous
Fri, 09/25/2009 - 12:51 | Link to Comment Anonymous
Fri, 09/25/2009 - 12:51 | Link to Comment TwoJacks
TwoJacks's picture

I watched this live. The attorney for the Fed said he didn't know if he had the authority to audit a "private entity," calling the very public J.P. Morgan a private company.  He was also very careful not to mention Goldman Sachs as the first primary dealer, the largest and biggest player in the market. Odd? 

Fri, 09/25/2009 - 12:56 | Link to Comment Gilgamesh
Gilgamesh's picture

To be truthful, there is the public JPM and the private JPMorgan.  I'd like to see the clip and the manner.

Fri, 09/25/2009 - 18:42 | Link to Comment Careless Whisper
Careless Whisper's picture

Maybe we should cut JPM some slack. Jamie hasn't been getting much sleep lately. Moammar Kadafi moved in to his hood in Bedford this week and the security helicopters have been very noisy.

http://www.lohud.com/article/2009909250350

 

Fri, 09/25/2009 - 13:41 | Link to Comment Strom
Strom's picture

I think he meant "private" as in "not a government entity". Like "private sector" vs. "public sector". They are publicly traded, but not part of the government (officially).

Fri, 09/25/2009 - 12:53 | Link to Comment buzzsaw99
buzzsaw99's picture

GRAYSON 4 PREZ!

Fri, 09/25/2009 - 12:58 | Link to Comment London Banker
London Banker's picture

Nice to see some questions being asked.  It's a start. 

Fri, 09/25/2009 - 13:15 | Link to Comment pigpen
pigpen's picture

Alan, will you marry me? - we can do it in CA, VT, MA and IA.

Ms. Bachman as much as I don't like your religious views I love your financial questioning.

Maybe we can do a stars war marriage with all three of us.

Fri, 09/25/2009 - 13:00 | Link to Comment Anonymous
Fri, 09/25/2009 - 13:03 | Link to Comment Handle with care
Handle with care's picture

I agree that Grayson's questions were very cleverly phrased to appear to be tough but to be exactly what was needed to provide enough wiggle room for deniability in case this show of "doing something" doesn't pacify the proles and it doesn't die down.

 

Saying that, it was obvious that the attorney knows full well that the Fed is manipulating markets and was being very careful to sound like he was denying it while not explicitly committing perjury.  

 

The really smart ones always have a plan B in case the monarchy falls so they can slot right into the new ruler's system.  Bernanke wasn't smart enough (or cynical enough) to plan that well and has perjured himself several times.  If the crony network ever falls he's toast.  The attorney wants to make sure that if it happens he can hop over the fence to join those throwing rocks at Bernanke

Fri, 09/25/2009 - 13:17 | Link to Comment gmrpeabody
gmrpeabody's picture

+1

Fri, 09/25/2009 - 14:38 | Link to Comment DaddyWarbucks
DaddyWarbucks's picture

Why would the crony network fail now? It's been in place for hundreds of years. True, the players get shuffled around and things don't always go exactly as planned but the system, and there is a fuedal system, survives and carries on.

Good observation about the plan B. I like to have a plan C so that I don't get left out on a limb if plan B does become plan A.

 

Fri, 09/25/2009 - 15:12 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Police Chief: "I'm shocked, shocked that there is gambling going on in this establishment."

Aid while handing something to the Police Chief: "Sir, here are your winnings."

Fri, 09/25/2009 - 13:08 | Link to Comment Great Depressio...
Great Depression Trader's picture

No way the FED is getting audited. Very simple reason as to why: NO ONE KNOWS AND EVEN IF THEY DID NO ONE CARES. Most of my friends have at least a BA many others JD's, MBA's and some PHD's. I tell them these things and they look at me like im some kind of a wierdo. Zerohedge and these other sites are a refuge for us truth seekers. Look around you people, CNBS, Showtime, CNN, FOX, NYT, WASHPOST, HBO, they rule and will continue to rule because people dont care. So long as they can make their payments and buy the latest gadget from bestbuy or ebay no structural changes in the ponzi scheme will occur. I commend R. Paul and Grayson for their efforts but in a few short months all this will be forgotten. A revolutionary spirit, involving free people, is required to bring down the corrupt system in place. Impossible that a few virtuous senators and at most 30,000 concerned and informed citizens can have the fed "audited".

Fri, 09/25/2009 - 20:07 | Link to Comment Uros Slokar
Uros Slokar's picture

I agree with the mass ignorance of the "elite" and "academics" - far too prevalent, and the complacency is downright scary. That said, I think you grossly underestimate two factors: those entities outside the U.S. which would love to see it fail (see Russia, China, etc.), and also the anger amongst the middle and lower classes, which has the chance boil over as soon as the "strife" and "hardship" becomes too widespread amongst the proles. Here's hoping.

Fri, 09/25/2009 - 13:08 | Link to Comment ED
ED's picture

Was Alvarez reflexively reaching for his (paying off Congressmen) wallet at 0.51, or was he groping for a wildly thrashing Salmon he'd thought'd snuck into his shirt-pocket only to realise it was his heart all a-flutter?

Fri, 09/25/2009 - 13:17 | Link to Comment D.O.D.
D.O.D.'s picture

yeah, I think he almost died right there...

Fri, 09/25/2009 - 15:48 | Link to Comment MsCreant
MsCreant's picture

Reaching for a concealed firearm he did not have because of the metal detectors???

Seriuosly, that was one flustered character.

Show or no show folks, that guy was squirming bad with those questions. If I have a moron questioning me who does not have good points to make, I look on in surprised disbelief at how stupid he is. I don't squirm.

I have been a hostile witness before, defending a committee decision that I myself did not believe in and voted the other way. It was after my grilling, realizing how uncomfortable I was during the process, that I had to own it that the person making the accusations had a point, and in my gut, I knew it. I could not be clean, because some of the allegations were just true.

God did I squirm.

Fri, 09/25/2009 - 19:38 | Link to Comment Anonymous
Fri, 09/25/2009 - 23:31 | Link to Comment MsCreant
MsCreant's picture

:-)

Fri, 09/25/2009 - 13:13 | Link to Comment Anonymous
Fri, 09/25/2009 - 13:58 | Link to Comment Gordon_Gekko
Gordon_Gekko's picture

But he's amassing what is going to be the most important thing in coming days - support of the Joe public. If the Fed/US Govt. thinks they can stop an unruly mob with nothing left to lose with their paid GOONS known as the police, they are sadly mistaken. Each and everyone of the current crop of 'rulers' and oligarchs will be guillotined in public squares. These idiots CANNOT imagine the sheer amount of rage boiling inside the public.

Fri, 09/25/2009 - 14:07 | Link to Comment Great Depressio...
Great Depression Trader's picture

Each and everyone of the current crop of 'rulers' and oligarchs will be guillotined in public squares. These idiots CANNOT imagine the sheer amount of rage boiling inside the public.

Just because me and you are pissed off doesnt mean the public is. Get this through your head there IS NO PUBLIC RAGE!!! And in the event of a currency crisis the feds will blame "currency speculators" and "manipulators" just like Nixon did when he severed the $/gold relationship. Remember, the only reason the country is in such a mess is because the people have been asleep for the last 30 yrs. What makes you think they will wake up now? Americans are getting what they deserve for allowing TPTB to rape them over and over again. Iraq war? Where were the real protests? Afghanistan buildup? Not a peep. Its every man for himself here (in a selfish way) so there wont be any change.

 

When the real currency crisis hits the American sheeple will be so afraid they will turn to big GOV to save them.

Fri, 09/25/2009 - 14:31 | Link to Comment Cursive
Cursive's picture

Over a million citizens protested in D.C. about two weeks ago.  I realize that you may not have heard about it since the MSM boycotted the story.  There is huge discontent and it will only grow as the ranks of the unemployed continue to grow.  I would not want to be one of the powerful elite in these days.  Sure, they are on top now, but look what happened to the Romanovs.  I'm not saying it goes down that way, I am saying that the elites will have trouble keeping a lid on this discontent and, well, keeping their lids on.

Fri, 09/25/2009 - 14:43 | Link to Comment DaddyWarbucks
DaddyWarbucks's picture

but look what happened to the Romanovs.

That was a bit of a black swan moment wasn't it? I've read that Dzerzhinsky's criteria for sorting out the elite was correct grammar among the women and uncalloused hands on the men.

Fri, 09/25/2009 - 15:27 | Link to Comment jlr
jlr's picture

If you really want to let the TPTB know you're pissed, march your millions down Broadway, Maiden, Wall, Pine, and then head up to Park.  This is where you idiot Teabaggers have it all wrong. 

Fri, 09/25/2009 - 18:14 | Link to Comment Sisyphus
Sisyphus's picture

+1000

Fri, 09/25/2009 - 16:55 | Link to Comment Great Depressio...
Great Depression Trader's picture

I know about the protest. And what happened as a result therefrom? Nothing. What we need in the US is some real protests like the ones in Greece after the shooting of the student last year. You remember those 3 weeks in Athens? Just because the cops shot and killed one 16yr the government was brought to its knees. Here, people are arrested, beaten, shot and killed daily by the gov and NOTHING happens. Until you start seeing BAC's, WFC's, JPM's, CitiBanks and other financial institutions being protested at (use your imagination) then nothing will change. And if you ask me, i dont see protests reaching this level of intensity as the sheeple are too scared. Thats why God will judge this nation so harshly because it is full of cowards, from the bottom all the way to the top.

Sat, 09/26/2009 - 10:47 | Link to Comment Anonymous
Fri, 09/25/2009 - 16:19 | Link to Comment Anonymous
Fri, 09/25/2009 - 20:41 | Link to Comment sgt_doom
sgt_doom's picture

Sadly, I must agree with you, although there is a sound reason for this situation existing:

50,000 foundations (skewing reality and "engineering consent" -- Bernays' phrase)

40,000 D.C. lobbyists (was 35,000 but grew by 5,000 for this backdoor insurance bailout laughingly called the "not-to-be-public-option")

and,  5 media-controlling corporations

And we wonder why so many are confused & bewildered?

Sat, 09/26/2009 - 10:58 | Link to Comment Takingbets
Takingbets's picture

"Get this through your head there IS NO PUBLIC RAGE!!!"

 

I beg to differ, you need to get out more often and talk to people. Lots of folks know whats happening I just think they are going to use their votes before the violence breaks out. Lets see what happens in 2010.

Fri, 09/25/2009 - 13:21 | Link to Comment Ruth
Ruth's picture

EVERYONE PLEASE RELINQUISH YOUR TIME TO GRAYSON, I WANT MORE BLOOD!

Fri, 09/25/2009 - 14:44 | Link to Comment Anonymous
Fri, 09/25/2009 - 23:40 | Link to Comment Fish Gone Bad
Fish Gone Bad's picture

Now that would be a great idea, here is Grayson's input page: http://action.firedoglake.com/page/s/1207hearing

Fri, 09/25/2009 - 23:49 | Link to Comment Missing_Link
Missing_Link's picture

Wow, so you're not only a hot blonde with dark glasses, you're also a vampiress.  Damn!  Need more ladies like you in my neck of the woods.

Fri, 09/25/2009 - 13:24 | Link to Comment Rusty_Shackleford
Rusty_Shackleford's picture

Why does no one cut to the chase though?

Why does no one ask, "Where does the Fed get the money that it disburses?"

"What is to theoretically stop the Fed from purchasing every asset on the entire planet?"

If there truly are no consequences to such activity, explain why the Fed doesn't just pay off every American's debts.

 

Fri, 09/25/2009 - 13:28 | Link to Comment rhinotrader
rhinotrader's picture

Thought Grayson was fantastic, needs to hammer even more.

Fri, 09/25/2009 - 13:35 | Link to Comment Sancho Ponzi
Sancho Ponzi's picture

It's about time for Rahm and company to conjure up a mega distraction. 

Fri, 09/25/2009 - 13:54 | Link to Comment …unexpectedly…
…unexpectedly…'s picture

Scary truth, Sancho.  

Fri, 09/25/2009 - 15:14 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

They are working on a distraction. This is why Iran is suddenly back in the news with big bad nuclear weapons.

Fri, 09/25/2009 - 15:20 | Link to Comment Sancho Ponzi
Sancho Ponzi's picture

If that's their distraction, it will take more than sabre rattling or Obama giving a speech to the G20.  If you were Ahmadinejad, would you be afraid of Obama? 

 

Fri, 09/25/2009 - 16:30 | Link to Comment Anonymous
Fri, 09/25/2009 - 13:46 | Link to Comment Gordon_Gekko
Gordon_Gekko's picture

The bears who think last couple of days' fall in stocks was not condoned by the Fed are dreaming. Their objective was to bring down Gold by causing the IDIOT momentum chasing weak longs in Gold to sell, even at the cost of a few red candles in the stock market. 

Fri, 09/25/2009 - 13:56 | Link to Comment Nathan Smith
Nathan Smith's picture

Agreed. 

I saw the idiots on FM last night thrashing gold after its nose dive yesterday. 

Funny, they failed to mention that yesterday was op ex for COMEX gold, and that 5000+ contracts were in the money @ the 1000 strike. 

Could it have been that the writers shorted to fuck the longs yet again.  Rinse repeat. 

Fri, 09/25/2009 - 13:55 | Link to Comment Cow
Cow's picture

I'm not sure Grayson got a straight answer on the "possession" of gold question.  Does possession mean physical possession or accounting possession?

I'm not sure he got a straight answer on the manipulate the market question.   The Fed could be manipulating the market in order to affect interest rates and rationalizing that that was in their jurisdiction...

Fri, 09/25/2009 - 14:45 | Link to Comment DaddyWarbucks
DaddyWarbucks's picture

I'm not sure Grayson got a straight answer...

If this helps remember that he was speaking to an attorney( Sorry Marla).

 

Fri, 09/25/2009 - 14:45 | Link to Comment Anonymous
Fri, 09/25/2009 - 13:52 | Link to Comment Pizza Delivery Man
Pizza Delivery Man's picture

I don't see why we need to audit the Fed.

They are clearly an institution acting with the highest regard of ethical intergrity but also clearly act in a sound and responsible manner in benefit of the citizens of the U.S.

Please stop bashing them...Leave Ben alone! Just replace the person with Ben Bernanke. http://www.youtube.com/watch?v=kHmvkRoEowc

 

Fri, 09/25/2009 - 21:01 | Link to Comment Gordon_Gekko
Gordon_Gekko's picture

Yeah, you're right - we don't need to audit the Fed, WE NEED TO KILL IT.

Fri, 09/25/2009 - 13:51 | Link to Comment Anonymous
Fri, 09/25/2009 - 14:13 | Link to Comment Anonymous
Fri, 09/25/2009 - 15:46 | Link to Comment MsCreant
MsCreant's picture

The squirming on the part of the lawyer was real, or he is an actor who can rival Brad Pitt. Not scripted. Watch it again.

Fri, 09/25/2009 - 20:43 | Link to Comment sgt_doom
sgt_doom's picture

"Who owns the gold?"

Geez, I thought everyone knew that....it's the Rockefeller family -- they've got a 400-year lease on the stuff.

Sat, 09/26/2009 - 00:02 | Link to Comment Hephasteus
Hephasteus's picture

That was actually a screw up. Treasury owns the gold. Not fed.

http://cumber.com/print.aspx?file=/content/commentary/090809.asp

Sat, 09/26/2009 - 00:47 | Link to Comment Anonymous
Sat, 09/26/2009 - 12:50 | Link to Comment Hephasteus
Hephasteus's picture

Just until the right jackass sees that. Then it's oops im kneeling behind a kicking donkey time.

Fri, 09/25/2009 - 14:20 | Link to Comment Anonymous
Fri, 09/25/2009 - 14:28 | Link to Comment Anonymous
Fri, 09/25/2009 - 14:47 | Link to Comment Anonymous
Fri, 09/25/2009 - 14:50 | Link to Comment TraderMark
TraderMark's picture

Obviously Grayson reads blogs... fun.

Fri, 09/25/2009 - 14:51 | Link to Comment TPC
TPC's picture

We know the banks are hoarding $2T in cash.  We know they're not lending that money out.  We also know the banks aren't stupid enough to let it sit in their money market accounts earning nothing.  We know they're not buying bonds because the bond market has tanked this year.  So the only logical conclusion is that the banks are buy risky assets.  What risky assets have rallied this year?  Hmmmm. 

It's now abundantly clear that the banks have been driving this rally.  Can you say ponzi scheme? See my latest thoughts here: http://pragcap.com/how-the-government-run-rally-morphed-into-the-bank-ru...

Fri, 09/25/2009 - 15:18 | Link to Comment Assetman
Assetman's picture

Actually, real commercial banking institutions are buying bonds (and other very high rated debt)with these extra reserves. In fact, it appears just recently many banks have been buying short and mid-dated Treasuries. The recent Treasury rally hasn't appeared out of thin air, and the Fed hasn't accelerated the pace of their purchses, either.

Many banks really don't mind idea of of purchasing a "true" AAA security and getting a yield of 1.8%, when the cost of funds is essentially zero. They can still shrink their loan book and still make money on guaranteed spread income.

And banks can possibly make even more $$$ if a flight to quality trade comes about for the implied purpose of "supporting a strong dollar".

On the other hand, those "investment" banks that have operated more like "hedge funds" than the "commercial banks" they now supposed to be-- have been taking their free money and going into the equity market casino. Goldman did it on Day One, followed by JP Morgan, and then tepidly by Morgan Stanley. I think those are the boyz you've been looking for.

Fri, 09/25/2009 - 16:16 | Link to Comment ghostfaceinvestah
ghostfaceinvestah's picture

Not to mention they arbitrage in the MBS market.  Apparently Bernanke believes he is legally allowed to buy Fannie and Freddie MBS because they are "agencies" of the government.  however, despite the market nomenclature, they are no such thing.  They do not have full faith and credit.

Thus, banks have to hold more capital for Fannie/Freddie MBS.  But Ginnies have full faith and credit.

So they sell their Fannie and Freddie to Bernanke, and buy Ginnie's, and their capital requirements go down, even though Fannie's and Golds trade on top of Ginnies due to the Fed interference in the market (meaning they give up no yield by swapping them).

Nice scam.

Sat, 09/26/2009 - 13:41 | Link to Comment sgt_doom
sgt_doom's picture

You are getting closer and closer but still missing the big picture, TPC (great graph, BTW!).

A goodly portion of that $2T went to the private equities. Why?  Because 80% of pension funds with more than $5B apiece are invested in them, and, should their ABSes, CLOs, and CFOs, etc., go into "credit-event-triggered" mode then all that credit derivatives being held at JPM, GS, Citi, BofA and Morgan Stanley will go RED ALERT! (Between 2005-2007 $633.8 billion worth of loans to PE firms for their leveraged buyouts - which were then re-packaged - who knows how many times or layers of securitization - and peddled as ABSes, etc.

And suddenly, all those pension funds are vapor!  (And that's not in the immediate design.)

 

Fri, 09/25/2009 - 14:55 | Link to Comment Anonymous
Fri, 09/25/2009 - 15:24 | Link to Comment mattco
mattco's picture

Man. Greyson is a dead man if he keeps this up. He will soon be found with a self inflicted gunshot wound in the back of a car dealership. 

Fri, 09/25/2009 - 16:01 | Link to Comment Anonymous
Fri, 09/25/2009 - 16:06 | Link to Comment Anonymous
Fri, 09/25/2009 - 16:11 | Link to Comment ghostfaceinvestah
ghostfaceinvestah's picture

This garbage just makes me sick:

http://www.bloomberg.com/apps/news?pid=20601087&sid=adDANopNzewM

"Sept. 25 (Bloomberg) -- Federal Reserve General Counsel Scott Alvarez said audits of monetary policy by the U.S. Congress could lead to higher interest rates and reduced confidence in central bank policy."

what a crock of shit.

 

Fri, 09/25/2009 - 16:52 | Link to Comment payitdown (not verified)
Fri, 09/25/2009 - 16:44 | Link to Comment MsCreant
MsCreant's picture

Alvarez, you disgusting, slimey, brown stripe wearing, little, ineffectual, weasel. Unless I am mistaken, all an audit does is show what is where. It does not tell anyone to do anything. Am I wrong about this? I think not.

Found another picture of him. Better looking here than in these sessions.

http://www.debhoeffner.com/animals/images/weasel.jpg

Fri, 09/25/2009 - 16:15 | Link to Comment Anonymous
Fri, 09/25/2009 - 16:34 | Link to Comment payitdown (not verified)
Fri, 09/25/2009 - 16:38 | Link to Comment MsCreant
MsCreant's picture

When I was growing up, there was a bad cartoon called Jabber Jaws (a shark). Grayson kind of looks like him...

http://3.bp.blogspot.com/_o6gTlGxCWVw/R8h3pnbaLAI/AAAAAAAAAHQ/9xnyAWQdha...

Fri, 09/25/2009 - 17:01 | Link to Comment Careless Whisper
Fri, 09/25/2009 - 17:18 | Link to Comment MsCreant
MsCreant's picture

I hope your shark is the right one. It will take a shark like that one to get the job done. We shall see.

Fri, 09/25/2009 - 16:37 | Link to Comment Anonymous
Fri, 09/25/2009 - 18:03 | Link to Comment Assetman
Assetman's picture

I think this thing gets killed in the Senate.

It would be a pretty dangerous thing to have Obama on the spot regarding Fed transparency.  It could really bite the Dems in the ass come 2012-- especially if the Fed make some serious policy errors in the process.

Nope.  Barney the purple dinosaur of a legislator will try some of his tricks, and it will fail to be reconciled between House and Committees.  There will be plenty of rational, yet essentially unrealted. reason why the Senate can turn this down... even with House passage.

The key will be what Ron Paul attenpts next.

Fri, 09/25/2009 - 19:28 | Link to Comment Hephasteus
Hephasteus's picture

It's all blackmailing driven. I mean compromise driven.

Fri, 09/25/2009 - 16:39 | Link to Comment Anonymous
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