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Here Is How The World's Biggest Bond Funds (And Others, Just Not You) Get Advance Notice Of What The Fed Is About To Do

Tyler Durden's picture




Reuters has just released a stunning special report detailing how the Fed leaks all important, non-public, and ever so material, information to private parties. From the report:

On August 19, just nine days after the U.S. central bank surprised financial markets by deciding to buy more bonds to support a flagging economy, former Fed governor Larry Meyer sent a note to clients of his consulting firm with a breakdown of the policy-setting meeting.

The minutes from that same gathering of the powerful Federal Open Market Committee, or FOMC, are made available to the public -- but only after a three-week lag. So Meyer's clients were provided with a glimpse into what the Fed was thinking well ahead of other investors.

His note cited the views of "most members" and "many members" as he detailed increasingly sharp divisions among the officials who determine the nation's monetary policy.

The inside scoop, which explained how rising mortgage prepayments had prompted renewed central bank action, was simply too detailed to have come from anywhere but the Fed.

A respected economist, Meyer charges clients around $75,000 for his product, which includes a popular forecasting service. He frequently shares his research with reporters, though he kept this note out of the public eye. Reuters obtained a copy from a market source. Meyer declined to comment for this story, as did the Federal Reserve.

By necessity, the Fed spends a considerable amount of time talking to investment managers, bank economists and market strategists. Doing so helps it gather intelligence about the market and the economy that is invaluable in informing the bank's decisions on borrowing costs and lending programs.

But a Reuters investigation has found that the information flow sometimes goes both ways as Fed officials let their guard down with former colleagues and other close private sector contacts.

Frankly, we stopped right there, very much disgusted that we have been proven correct yet again when we asked rhetorically if "Bill Gross just confirmed on live TV that he has an "advance look" at non-public fed data?". Now we know how it is that Bill Gross knew all too well that the Fed would lower its GDP expectations to 2% three weeks ahead of the minutes release. It also explains why PIMCO is ever so precise in going on margin in purchasing either bonds or MBS.

Fuck it.

This is beyond disgusting, but that is to what this bullshit country has devolved: leaking the most important decisions made on "behalf of the middle class" so that a few multi-billionaires can make a few extra soon to be worthless dollars.

We will indicate if and when Pimco goes on margin next when the Total Return Fund posts its holding distribution next in mid October, telegraphing what the Fed has told it about the November FOMC meeting, but frankly at this point it is irrelevant. It is now obvious that the Fed realizes all too well that all is lost and just feeding its wealthy clients (that's right, these people are the Fed's CLIENTS) the last remaining scraps before it pulls the hyperinflation switch.




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Thu, 09/30/2010 - 14:13 | Link to Comment Azannoth
Azannoth's picture

Where is the Congressional investigation ? or am I being naive

Thu, 09/30/2010 - 14:15 | Link to Comment LostWages
LostWages's picture

They left town just in time.  Getting re-elected is more important than the country's problems don'tcha know.

Thu, 09/30/2010 - 16:06 | Link to Comment ATG
Thu, 10/07/2010 - 14:30 | Link to Comment themosmitsos
themosmitsos's picture

Tyler, sooo, how do you really feel about this?

Thu, 09/30/2010 - 14:16 | Link to Comment LeBalance
LeBalance's picture

Surface of Uranus and Yes.

Thu, 09/30/2010 - 14:17 | Link to Comment HEHEHE
HEHEHE's picture

Who do you think his clients are?

Thu, 09/30/2010 - 14:26 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

First qualification to be his client. Can afford to pay $75,000.

Last qualification to be his client. Can afford to pay $75,000 and willing to keep mouth shut.

Clearly someone in the second category leaks like Greenspan's bladder (so I hear).

Thu, 09/30/2010 - 14:35 | Link to Comment Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

Nice! lol

Thu, 09/30/2010 - 14:47 | Link to Comment Dr. No
Dr. No's picture

Broke the second rule of fight club.

Thu, 09/30/2010 - 14:24 | Link to Comment unwashedmass
unwashedmass's picture

anyone who is surprised by this is brain dead. our government & markets are now thoroughly corrupted.

buy gold.buy silver. and hold on cause we're going

down

down

down

down

down

 

Thu, 09/30/2010 - 14:33 | Link to Comment B9K9
B9K9's picture

I think that it comes as a surprise to many, even those who are well versed in the failings of man-made institutions, that our government is at the center of an organized criminal syndicate.

It is now not a question of if, but of when; the whole thing is coming down. Frankly, the insiders are probably amazed that it has lasted this long. Credit control of essential mass media and expert manipulation of key psychological triggers.

The bigger question that remains is much the same as posed to the dog who finally catches the car: ok, so now what are supposed to do?

Thu, 09/30/2010 - 14:49 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

I think that it comes as a surprise to many, even those who are well versed in the failings of man-made institutions, that our government is at the center of an organized criminal syndicate.

Our social and political programming runs very very deep. Most of us have no idea how ingrained it is into our very fabric, this indoctrination which starts with our parents proudly teaching us what they were programed to believe. It then progresses through the 12 primary grades and out into society. For those among us who need or want extra lessons, there's always college and grad school, where we directly pay for our programming. And all of this is reinforced through our mass media and "free" press.

For myself, the realization came when my son turned 12 and I suddenly realized that I had crippled him for life simply by being a "good" father. I had taught him to be a good and industrious slave. That was the straw that broke this camels back. No longer did I wish to inflict my conditioning upon anyone else. This was where I vowed to wake up and never turn back.

We must all get to the point where we become willing, no desperate, to erase everything we think we know before we can begin to learn the things we need to know. The pain we feel during this process is not the learning but the un-learning. It's never easy to tear apart of very belief system.

Thu, 09/30/2010 - 14:57 | Link to Comment Shameful
Shameful's picture

Then there is the isolation that has to be pushed through.  On my journey I quickly realized friends and family would either not make it or not yet ready to make it.  So I had to keep my views largely to myself, or just be seen as crazy (With family I picked the crazy route).  Thinking as an individual has a certain amount of solitude built into it.  To me that was the hardest part, knowing that most would see me as mad if I told them the way I was seeing the world, even if they agreed with all the facts leading to my conclusions.

Thu, 09/30/2010 - 15:23 | Link to Comment xenophobe51
xenophobe51's picture

My brother and I know the feeling. We went through this whole "Chicken Little" phase where we tried our damnedest to get our friends and family to see and understand what is happening—and what's about to happen—to little avail. We've met with enough ridicule to realize that it's best if we just keep our traps shut and continue buying shiny, inedible metal (bitchez!). It's discouraging seeing everyone standing on the tracks, wondering why the ground is shaking, and unwilling to turn around and see the freight train coming up behind them. When we go to the bar, we've got nobody to talk to about this stuff but eachother.

Thu, 09/30/2010 - 16:01 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Ignorance is bliss, thus the vast majority remain willingly and blissfully ignorant.

Thu, 09/30/2010 - 16:42 | Link to Comment knukles
knukles's picture

Welcome to the fellowship.
There however comes a great deal of serenity after a period of time, born of comfort with one's own self, character that was unknown theretofore.  Importantly attached is a knowledge that one alone, is not powerful enough to change the world and as such, a degree of humility and peace that after some time becomes attractive to others.  It is at that point others shall begin seeking one's opinion and therein, the valued exchange of opinion and views begin in earnest. 
Do not fight the isolation.  Embrace it as a powerful learning experience, for ultimately we intuitively understand and are able to explain that which used to baffle us.

Thu, 09/30/2010 - 18:25 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

You have wonderfully explained the concept of "knowing", something that is extremely attractive to the lost and frightened. By fully, completely and without reservation accepting our isolation and rejection, we become infinitely stronger, thus setting up within what can only be called a "strange attractor", what others may call Karma or "presence".

Once we have passed several times through the heat of the flames of rejection and isolation, each time followed by a soaking in our own tears of frustration, will we be hardened by this tempering process. Only then will others seek us out for this inner wisdom. In our present condition, all we appear to the disenfranchised is walking talking bad news.

We must give up all thoughts of control. Only then will we be able to gain inner peace, thus removing once and for all the need or desire for control. This new inner strength will become self evident to all that pass. This is real power, the kind that comes from within, from our own willingness to suffer and grow. It can never be taken, borrowed or loaned. It can only be shared and freely given. 

Thu, 09/30/2010 - 21:36 | Link to Comment i-dog
i-dog's picture

"Welcome to the fellowship ....... Do not fight the isolation.  Embrace it "

+ heaps. Beautifully expressed.

Thu, 09/30/2010 - 15:12 | Link to Comment aerojet
aerojet's picture

Ha!  That's why I'm NOT teaching my kids to believe in these fairly tales!  I am a proud non-voter, and I will encourage my children to be ever skeptical of all systems.  I will also teach them that government is another form of RELIGION.

Thu, 09/30/2010 - 21:38 | Link to Comment i-dog
i-dog's picture

Ha! I think Obama junked you.

Thu, 09/30/2010 - 15:31 | Link to Comment mudduck
mudduck's picture

"It's not what you don't know that gets you into trouble, it's what you know for sure that aint true." Mark Twain. Might have even heard that quoted here recently in another post.

Thu, 09/30/2010 - 15:37 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Might have even heard that quoted here recently in another post.

You might be referring to me. I used that quote at the very beginning of a two part article I posted here starting 08/31/2010

http://www.zerohedge.com/article/what-if-%E2%80%9Cit%E2%80%9D-doesn%E2%80%99t-end-bang-whimper-mind-games-chapter-one-two

Thu, 09/30/2010 - 17:02 | Link to Comment Ropingdown
Ropingdown's picture

For stylistic reasons I prefer Will Rogers' language, "It ain't what ya don't know that usually gets ya, but what ya know that just ain't so."

Thu, 09/30/2010 - 15:54 | Link to Comment 1100-TACTICAL-12
1100-TACTICAL-12's picture

Great point CD, I do not believe I am programmed anymore, but once was well on my way. Until my parents divorced in my early teens & I was forced to see the world for what it truly is. Maybe you could together a quiz or something.....

Thu, 09/30/2010 - 16:04 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Our programming and indoctrination goes well beyond "just" our beliefs about the economic and social systems.

For example, we "believe" there are diseases that make us sick, rather than understanding that we make ourselves sick. Or at least we make ourselves extremely vulnerable to sickness. And on and on and on.

Thu, 09/30/2010 - 16:16 | Link to Comment trav7777
trav7777's picture

This is just some bunk-ass shit here tho.

There are diseases which will make you sick even if you were previously in good health.  Reality trumps belief

Thu, 09/30/2010 - 18:40 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Wow, nice to see you have been triggered to respond in such an angry way. I said.

For example, we "believe" there are diseases that make us sick, rather than understanding that we make ourselves sick. Or at least we make ourselves extremely vulnerable to sickness. And on and on and on.

Where do I say there is no disease or that disease won't make you sick because I don't see it? And please define "good health". Do you exclude mental health? Do our brains and our mental attitude, our state of consciousness as some would call it, have something to do with our health and our ability to remain healthy?

So you're saying someone who's severely depressed has the same ability to ward off illness as someone who is not depressed? Or that some people don't, and can't possibly, make themselves ill for a variety of reasons?

Thu, 09/30/2010 - 16:28 | Link to Comment Rusty Shorts
Rusty Shorts's picture

Good point, "diseases", ever wonder how man lived for a 100,000 years before the first "immunization shots".

Thu, 09/30/2010 - 17:18 | Link to Comment cranky-old-geezer
cranky-old-geezer's picture

Medical/pharma industry psyops.  Promote lies, dumb people down, keep them in fear.   Just like government psyops. 

To find truth you have to go outside medical/pharma industry.

Thu, 09/30/2010 - 21:08 | Link to Comment snowball777
snowball777's picture

Generally in pain and for a much shorter lifespan.

Thu, 09/30/2010 - 23:30 | Link to Comment Rusty Shorts
Rusty Shorts's picture

wrong

Thu, 09/30/2010 - 15:21 | Link to Comment breezer1
breezer1's picture

you mean an ' international , not all that organized , criminal syndicate ?

Thu, 09/30/2010 - 16:01 | Link to Comment ATG
ATG's picture

VOTE OUT THE CROOKS

Thu, 09/30/2010 - 17:21 | Link to Comment cranky-old-geezer
cranky-old-geezer's picture

... and vote more crooks in to replace them.

Fri, 10/01/2010 - 07:38 | Link to Comment i-dog
i-dog's picture

Good luck with that. How well has it worked for you in the last 100 elections?

Thu, 09/30/2010 - 16:27 | Link to Comment Marla And Me
Marla And Me's picture

This is what you have to look forward to ladies and gents:

http://www.msnbc.msn.com/id/39441275/ns/world_news-americas/

When austerity trickles down to the cops, all hell breaks loose.  There is no solution without pain.  Will we rip the band-aid off or just slowly pull it and all the hair off... Prepare accordingly.

 

Thu, 09/30/2010 - 20:05 | Link to Comment JR
JR's picture

You're right, B9K9. This is more than a leak story, more than a breach of trust.  The Fed is simply an elaborate getaway car… a vehicle designed by a mob to be used to steal trillions from Americans.  How many times must it be repeated: the Fed uses control of the money supply to manipulate markets and reports, constantly pushing and pulling all U.S. financial policy to override legitimate supply and demand.

The Fed is owned by a few private bankers: it dominates the entire U.S. government (not the other way around), it operates in total secrecy and its owners and their friends, through their private Fed operations, have become the most obscenely wealthy people on the planet.  And one of the gang slips out with a few secrets.  Please, let’s keep our eye on the ball—the hijacking of America and the world.

Thu, 09/30/2010 - 14:29 | Link to Comment Pedro
Pedro's picture

Can't these be prosecuted for "Insider Trading" assuming somebody has the "cajones" to do it.  We have all known this crap has been going on.  No congressional investigation wil happen because it is not a republican or democrat at fault (they are both in on it-money takes precedence over party affiliation).   They go after each other, but, when the opportunity to protect the citizens presents itself, these weasels "weasel out".

 

Thu, 09/30/2010 - 14:37 | Link to Comment Shameful
Shameful's picture

It's not about cajones, they are united in criminality.  A person does not get to that level without breaking some laws.  That person goes to prosecute and the system eats them alive with their misdeeds.  I'm no fan of Spitzer but he was sniffing around the wrong tree and got nailed for it.  They simply won't let an honest man into a place where he could do damage.

My favorite example, Barney Frank.  Underage brothel being run out of his home.  The media starts and he comes out and threatens to pull down the system with him, Samson style.  They back off and it's business as usual.

Thu, 09/30/2010 - 14:43 | Link to Comment Pedro
Pedro's picture

I agree.  They are criminals covering their collective asses.  BTW, did all of this start with the Bill Gross slip the other day?

Thu, 09/30/2010 - 15:00 | Link to Comment Slipmeanother
Slipmeanother's picture

Why is everyone so surprised. The problem is the understanding of what government is and how it occured then everything becomes clear. When man the hunter gatherer became a farmer he created fixed property and a surplus wealth flow from his activities. This attaracted predators to kill and steal his property and wealth. Eventually the predators worked out that its better to keep the man alive and just fleece him for as much as he can bear and by offering him protection. The predators then became government---the rest is just various permutations of the same old story line.

Thu, 09/30/2010 - 15:09 | Link to Comment Dr. No
Dr. No's picture

Derived down to first principles.  Salute.

Thu, 09/30/2010 - 15:08 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

I suspect if someone were to conduct an in depth study of what has been said in the past by the likes of Gross and company, they would find there were little clues, call them slips of the tongue, that were all over the place and time. We're just beginning to notice and consciously look for them.

It's sort of like buying a new blue car. Suddenly you see that model and color everywhere.

Thu, 09/30/2010 - 16:04 | Link to Comment Desenstematic
Desenstematic's picture

Look at us...Jesus, all squabbling around, talking about how this or that is illegal, and that "those people" are criminals.  Like a crying kid in a school yard...are we this weak??  It's time to stop feeling so isolated, so alone in our sweet "knowledge" about whats really going on, and get something done.  Everyone is just trying to get ahead of everyone else..with their stupid investments...gold ..silver...everything - all of us sitting alone with our lump of "wealth", cautiously looking out the window at whoever may come to take it. I am sick and disgusted with this lifestyle.

Thu, 09/30/2010 - 16:13 | Link to Comment molecool
molecool's picture

Spot on - it's time to see those fuckers burn. Have you guys watched international news lately? Half of Europe was on the streets demonstrating against having to hold the bag for the bankster bailouts. To no avail of course - the elite owns the politicians and nothing but Europe in flames will change their resolve to milk the working class for its last breadcrum.

Thu, 09/30/2010 - 16:44 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Sounds great. So tell me how you're going to round up 10,000 or 100,000 or 1,000,000 to start the party? I agree we must revolt. I've been advocating it for over a year in my articles and in dozens and dozens of my posts. We must push back. Are you going to do it alone or will you have help?

How are you going to get the ball rolling?

Thu, 09/30/2010 - 17:14 | Link to Comment hamurobby
hamurobby's picture

Austerity would, thats probably why our gov chose qe instead.

Thu, 09/30/2010 - 16:48 | Link to Comment knukles
knukles's picture

No.

Mr. Gross' Dr. Freud speaking merely confirmed suspicions.
Or conspiracy theories as the Power Elite, their enablers, beneficiaries and propagandists would have derided. 

Thu, 09/30/2010 - 17:48 | Link to Comment hamurobby
hamurobby's picture

I agree.  They are criminals covering their collective asses.  BTW, did all of this start with the Bill Gross slip the other day?

 

Im surprised we don't have a press release from Pimpco derailing these allegations...

Thu, 09/30/2010 - 14:31 | Link to Comment Ripped Chunk
Ripped Chunk's picture

The what ?

Thu, 09/30/2010 - 16:11 | Link to Comment Doc Brown
Doc Brown's picture

This behavior has been going on for decades in the institutional markets.

Thu, 09/30/2010 - 18:37 | Link to Comment DTCC 1999
DTCC 1999's picture

 

It's not illegal for Congress members to invest in stocks based on inside information and their annual personal financial disclosure forms don't require exact math or use of that particular standard form.  

It's one area where they don't want to sling mud at each other.  

 

Thu, 09/30/2010 - 23:17 | Link to Comment New_Meat
New_Meat's picture

Bawney Fwank could not be found to comment.  - Ned

Thu, 09/30/2010 - 14:15 | Link to Comment brian0918
brian0918's picture

This is no different from insider trading, and is a great example of the government's "do as I say, not as I do" policy.

Thu, 09/30/2010 - 14:32 | Link to Comment Popo
Popo's picture

It's definitely insider trading, but the irony is sooo much richer:  Consider the fact that Bernanke's *entire* rationale for Fed secrecy is "preserving faith in the system".  

Meanwhile Ben's two-bit huckster friends sell out for a cheap buck and completely demolish said faith.

Oops. Fail.

 

 

Thu, 09/30/2010 - 14:40 | Link to Comment CitizenPete
CitizenPete's picture

+1

Thu, 09/30/2010 - 15:22 | Link to Comment DonnieD
DonnieD's picture

Good point.

Do you think Ben can sleep at night? I mean, I wake up in the middle of the night if I get behind on a project at the office. This guy is ruining the lives of 300M people.

Thu, 09/30/2010 - 15:57 | Link to Comment andybev01
andybev01's picture

Yeah, but only a few 10's of thousands of those people affect his bottom line so he probably fits in a few cat naps throughout the day to tide him over.

Thu, 09/30/2010 - 16:28 | Link to Comment still kicking
still kicking's picture

I think you underestimate Benny's ability, I think he is more likely ruining the lives of 3 billion people minimun, I'd go ahead and say the whole world population but half of them live so shitty a life it really can't get any worse, that's not Benny's fault per se but rather that of his predecessors and their respective western and chinese counterparts.

Thu, 09/30/2010 - 14:32 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Agreed. Same idea, different execution.

Are we really so surprised by this revelation? I mean I understand it's one thing to suspect something and another to "know" it. But this "difference" is really about our denial rather than the act itself. Because if push really came to shove, we all knew in our hearts this was going on. Right?

When we're no longer sickened by this type of news, that'll be the day when we'll be ready to do something about it. And I don't mean write another letter to Congress. That will be the day that our collective and individual denial is all washed away and reality is staring us straight in the face.

Then we will all "know" what we need to do.

Thu, 09/30/2010 - 15:28 | Link to Comment xenophobe51
xenophobe51's picture

I think the day that I stop being incensed by revelations that our "whacko conspiracy theories" are actually true will be the day my feeble soul has finally perished.

Thu, 09/30/2010 - 15:31 | Link to Comment Nathan Muir
Nathan Muir's picture

CD, I hope this day comes soon.  I, for one, am ready - I have fucking had it!  I had once hoped we could change things without violence, I am now convinced we cannot...

Our best non-violent chance would be a nationwide default on all debt.  But the sheeple will not wake up, as they don't read ZH(etc), understand the content, or even care - sadly.

Sat, 03/05/2011 - 22:06 | Link to Comment Sedaeng
Sedaeng's picture

I for one wish a quick demise of this sham of a govt.  BUT, I have only recently come to terms with the revelations and just recently started preparing.  I am only 100 ounces into PM's.  I have no food storage.  I just received my 9mm Luger and 1000 rounds of ammo.  I am not prepared for the onslaught that would follow a revolution.  

Not to sound selfish. I just need a couple of more months, so hold off on the organizing.  pretty please

*crossing fingers the system does not do itself in by then.

Thu, 09/30/2010 - 15:58 | Link to Comment PlausibleDenial
PlausibleDenial's picture

Yeah, I am going get guns and go after them, literally... :)

Thu, 09/30/2010 - 16:12 | Link to Comment nedwardkelly
nedwardkelly's picture

When we're no longer sickened by this type of news, that'll be the day when we'll be ready to do something about it

I'm no longer sickened by it, because I'm just not surprised by it anymore. Just more evidence that the game is entirely rigged (not in my favor).

I still don't know what to do though. I say that because the majority of the population aren't sickened by it, they never were, they probably never will be. Most poeple just don't care. Ignorance is bliss for the average iPleb.What I think I need to do is get people fired up about how completely screwed over they're getting, but the truth is that life is pretty good for the average yank. How do you get someone fired up and angry at the system when their biggest worry is wether they should buy iPhone 4, or wait until the next release? Whenever I try to explain to someone in the ignorance is bliss camp I can see their eyes glaze over as they completely lose interest in what I'm talking about, nod when they think they're supposed to nod, while trying not to make it too obvious they just want me to stop talking.

 

Thu, 09/30/2010 - 16:29 | Link to Comment 1100-TACTICAL-12
1100-TACTICAL-12's picture

Some people won't, ain't never & don't want to even attempt to take the blinders off. Then they wonder why you peppered their ass with bird-shot, in the middle of the night, while they were pilfering around in your garden...

Thu, 09/30/2010 - 18:39 | Link to Comment chinaguy
chinaguy's picture

Hope those folks can hurdle fences w/ a couple of pissed off Akitas tearing after them in the dark!

Thu, 09/30/2010 - 14:17 | Link to Comment Jeff Lebowski
Jeff Lebowski's picture

Fuck it...  +1

Thu, 09/30/2010 - 14:18 | Link to Comment the not so migh...
the not so mighty maximiza's picture

They do it to save our country, not to do insider trading.   They are BRAVE patriots///sarcasm off///

Thu, 09/30/2010 - 14:19 | Link to Comment HEHEHE
HEHEHE's picture

"Fed officials let their guard down with former colleagues"

Wink, wink

 

Thu, 09/30/2010 - 14:38 | Link to Comment Popo
Popo's picture

Blabbing to former colleagues is bad enough.  But let's just pause for a minute to fully appreciate the complete clusterfuck of a concept that is encapsulated by those three simple words above:   "The Fed's clients".

...The what?

 

Thu, 09/30/2010 - 15:26 | Link to Comment MarketTruth
MarketTruth's picture

The Fed is a member-owned PRIVATE banking institution that also just so happens to sevice the United States public and government. So the private members (and chosen few others) get whatever information they need. This way Fed members can gain an advantage over those pesky non-members who are worth a small pittance compared to the member owners such as the House Of Rothschild, JP Morgan, Rockafellers, etc.

Thu, 09/30/2010 - 19:08 | Link to Comment Cathartes Aura
Cathartes Aura's picture

succinct, and bears repeated reading until it informs you sub-consciously.

to this I would only add, all cronies in the "house, senate, and oval office" work for and on the behalf of the Fed, and would not be there otherwise.

Thu, 09/30/2010 - 14:19 | Link to Comment Gonzalo Lira
Gonzalo Lira's picture

There will never be any investigations—let alone indictments—and as to convictions? What kind of pot are you smoking? Cause I'd like to have some of that powerful ganga that's making anyone think that there'll ever be any convictions. 

 

USA really is screwed. 

 

GL

Thu, 09/30/2010 - 14:29 | Link to Comment Pining for the ...
Pining for the Fjords's picture

Your roadmap to hyperinflation is looking more and more plausible by the day. Ultimately, treasuries are the sponge soaking up everything toxic and when the rats start leaving that sinking ship, look out below.

Thu, 09/30/2010 - 14:48 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

 

State Street Employees Charged for Misleading Investors About Subprime Mortgage Investments FOR IMMEDIATE RELEASE
2010-177

Washington, D.C., Sept. 30, 2010 — The Securities and Exchange Commission today charged a pair of employees at Boston-based State Street Bank and Trust Company with misleading investors about their exposure to subprime investments.

The SEC's Division of Enforcement alleges that John P. Flannery and James D. Hopkins marketed State Street's Limited Duration Bond Fund as an "enhanced cash" investment strategy that was an alternative to a money market fund for certain types of investors. By 2007, however, the fund was almost entirely invested in subprime residential mortgage-backed securities and derivatives. Yet despite this exposure to subprime securities, the fund continued to be described as less risky than a typical money market fund and the extent of its concentration in subprime investments was not disclosed to investors.

Thu, 09/30/2010 - 16:31 | Link to Comment still kicking
still kicking's picture

and I would guess these two bozos were mid level VP's?  If criminal prosecutions ever come about from this entire economic fiasco those are the people that will be prosecuted, it will never go all the way up the chain.

Thu, 09/30/2010 - 20:50 | Link to Comment xenophobe51
xenophobe51's picture

USA really is screwed

 

Mr. Lira, you make me want to learn more about Chile. Are the rents reasonable?

Thu, 09/30/2010 - 14:19 | Link to Comment Pladizow
Pladizow's picture

If you continue to gamble at a rigged casino you deserve what you get!

Thu, 09/30/2010 - 14:21 | Link to Comment Popo
Popo's picture

Two words:  Jail time.

Thu, 09/30/2010 - 14:26 | Link to Comment tmosley
tmosley's picture

Two better words: lynch mob.

Thu, 09/30/2010 - 15:25 | Link to Comment CrockettAlmanac.com
CrockettAlmanac.com's picture

Two best words: Atlas Shrugged.

Thu, 09/30/2010 - 15:35 | Link to Comment andybev01
andybev01's picture

is pitchfork one or two words...

Thu, 09/30/2010 - 14:21 | Link to Comment Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

Maybe Al Franken needs to modify his letter...

Thu, 09/30/2010 - 14:21 | Link to Comment CU1981
CU1981's picture

Hang'em High, Biatches

Thu, 09/30/2010 - 16:05 | Link to Comment 1100-TACTICAL-12
1100-TACTICAL-12's picture

Mmmmm....I like them french fried taters Mmmmm....

Thu, 09/30/2010 - 14:21 | Link to Comment Dr. No
Dr. No's picture

What more can the FED do to undermine public opinion?  I mean at this point, they are spittin in our faces and asking us to dare repeal the FED.  At least with the mafia, they made real attempts at keeping out of the papers and to not draw attention to themselves. 

Show me the gold.

Thu, 09/30/2010 - 14:31 | Link to Comment Dr. No
Dr. No's picture

The founding fathers (who only went by their first names on Jeckyll island) would be turning in their graves if they knew the brazen behavior of these current FED board memebers display.

Thu, 09/30/2010 - 14:22 | Link to Comment Hansel
Hansel's picture

Depressing news.  What a bummer.

Thu, 09/30/2010 - 14:22 | Link to Comment Troy Ounce
Troy Ounce's picture

 

Middle class...fiddle class..

Thu, 09/30/2010 - 15:30 | Link to Comment OpenEyes
OpenEyes's picture

Middle class gets the Middle Finger!

Thu, 09/30/2010 - 14:23 | Link to Comment H. Perowne
H. Perowne's picture

Crony capitalism at its finest. BOHICA!

Thu, 09/30/2010 - 14:24 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

A fascist government is for private benefit, always. 

Thu, 09/30/2010 - 14:59 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

From further into the story.

Small wonder that large funds are willing to shell out tens of thousands of dollars a year to receive "color" -- as investors refer to the useful tidbits that plugged-in consultants supply.

 

The precise number of former Federal Reserve employees tapping their network of old colleagues can't be determined, but by most accounts they are a sizable group.

 

"The revolving door between the Fed and the private financial sector is quite significant," said Timothy Canova, professor of international economic law at Chapman University School of Law in Orange, California.

So you and I get the black and white 13" TV and certain select "clients" watch the 50" LCD color TV. Of course, this isn't news so much as it is a confirmation.

Well, I have a new vocabulary usage. The financial elite are men and women of "color". And I don't mean a different race.

Thu, 09/30/2010 - 15:44 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The TV that the gov gave me doesn't work.  I'm going to your house for the game.  Then afterwards let's go steal some of that COLOR.

Thu, 09/30/2010 - 14:24 | Link to Comment redpill
redpill's picture

So they'll send Martha Stewart to jail on a technicality, yet PIMCO & friends can frontrun and fuck over every investor in the country perpetually and they are free from any repercussion.

 

Thu, 09/30/2010 - 14:33 | Link to Comment Something Wicke...
Something Wicked This Way Comes's picture

Nothing to see here, move along.

Thu, 09/30/2010 - 15:34 | Link to Comment Nathan Muir
Nathan Muir's picture

It is precisely because of this attitude that nothing changes. 

Thu, 09/30/2010 - 16:11 | Link to Comment MsCreant
MsCreant's picture

What are you willing to do Nathan, vote? 

Thu, 09/30/2010 - 16:35 | Link to Comment still kicking
still kicking's picture

I personally am willing to default, ON EVERYTHING.  I figure I will legally divorce my wife make sure I have to pay alimony and child support in large sums, tell the banks to fuck off and try to garnish what they can and spend the rest on gold, silver, food and ammo, while I snuggle up to my "ex" wife at home and hold my son.

Thu, 09/30/2010 - 22:24 | Link to Comment Kali
Kali's picture

I love creativity and imagination.

Thu, 09/30/2010 - 14:25 | Link to Comment papaswamp
papaswamp's picture

Well this explains why Summers and Emmanuel bolted...they saw this coming.

Thu, 09/30/2010 - 14:26 | Link to Comment Racer
Racer's picture

Where are the pitchforks and guillotines for these thieving cheating greedy banksters?

Thu, 09/30/2010 - 14:36 | Link to Comment Pining for the ...
Pining for the Fjords's picture

Might I humbly suggest that Vlad the Impaler had some interesting thoughts worth considering...

Thu, 09/30/2010 - 14:44 | Link to Comment Voluntary Exchange
Voluntary Exchange's picture

Here are Scotland's (America's?) terms:

Lower your flags, and march straight back to England, stopping at every home you pass by to beg forgiveness for a hundred years of theft, rape, and murder.  Do that and your men shall live. Do it not and everyone of you will die today. 

Before we let you leave your commander must cross that field, present himself before this army, put his head between his legs,  and kiss his own ass!

 

Thu, 09/30/2010 - 14:27 | Link to Comment TradingJoe
TradingJoe's picture

hah, just another confirmation of the "guys" exclusive "deals...like paulson's trade of the century hehehe or pimco's "supremacy" in FI management hehehe you know folks when this shit is coming down I hope for your asses you are not here anymore...this "outcome" will be one for the history books, I want to read that shit from REALLY AFAR! 

Thu, 09/30/2010 - 14:27 | Link to Comment the not so migh...
the not so mighty maximiza's picture

I can assume this was going on for many decades and just did not start under Dumbos watch.

Thu, 09/30/2010 - 14:28 | Link to Comment Overpowered By Funk
Overpowered By Funk's picture

As Senator Carlin once said, " It's a big fuckin' club, and you ain't in it."

Thu, 09/30/2010 - 14:44 | Link to Comment aheady
aheady's picture

A big fuckin' club alright. Being swung in their direction.

Thu, 09/30/2010 - 14:53 | Link to Comment redpill
redpill's picture

RIP Mr. Carlin.

Forget the politicians. The politicians are put there to give you the idea that you have freedom of choice . . . you don’t. You have no choice. You have owners. They own you. They own everything. They own all the important land. They own, and control the corporations. They’ve long since bought, and paid for the Senate, the Congress, the state houses, the city halls, they got the judges in their back pockets and they own all the big media companies, so they control just about all of the news and information you get to hear. They got you by the balls. They spend billions of dollars every year lobbying . . . lobbying, to get what they want . . . Well, we know what they want. They want more for themselves and less for everybody else, but I’ll tell you what they don’t want . . . they don’t want a population of citizens capable of critical thinking. They don’t want well informed, well educated people capable of critical thinking. They’re not interested in that . . . that doesn’t help them. That’s against their interests. That’s right. They don’t want people who are smart enough to sit around a kitchen table and think about how badly they’re getting fucked by a system that threw them overboard 30 fuckin' years ago. They don’t want that. You know what they want? They want obedient workers . . . Obedient workers, people who are just smart enough to run the machines and do the paperwork. And just dumb enough to passively accept all these increasingly shittier jobs with the lower pay, the longer hours, the reduced benefits, the end of overtime and vanishing pension that disappears the minute you go to collect it, and now they’re coming for your Social Security money. They want your fuckin' retirement money. They want it back so they can give it to their criminal friends on Wall Street, and you know something? They’ll get it . . . they’ll get it all from you sooner or later cause they own this fuckin' place. It’s a big club and you ain't in it. You and I are not in The big club. By the way, it’s the same big club they use to beat you over the head with all day long when they tell you what to believe. All day long beating you over the head with their media telling you what to believe, what to think and what to buy. The table has tilted folks. The game is rigged and nobody seems to notice. Nobody seems to care. Good honest hard-working people . . . white collar, blue collar it doesn’t matter what color shirt you have on. Good honest hard-working people continue, these are people of modest means . . . continue to elect these rich cocksuckers who don’t give a fuck about you. They don’t give a fuck about you . . . they don’t give a fuck about you. They don’t care about you at all . . . at all . . . at all, and nobody seems to notice. Nobody seems to care. That’s what the owners count on. The fact that Americans will probably remain willfully ignorant of the big red, white and blue dick that’s being jammed up their assholes everyday, because the owners of this country know the truth. It’s called the American Dream cause you have to be asleep to believe it . . .”

 

 

Thu, 09/30/2010 - 14:57 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I have a feeling that George reads ZH from heaven.

Thu, 09/30/2010 - 15:07 | Link to Comment DocLogo
DocLogo's picture

no, george is dead

Thu, 09/30/2010 - 15:39 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

...from heaven.

Thu, 09/30/2010 - 16:00 | Link to Comment aheady
aheady's picture

+ + +

Thu, 09/30/2010 - 16:09 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

George is still plugged into the collective consciousness. He told me the other day he's having a ball. :>)

Thu, 09/30/2010 - 16:22 | Link to Comment molecool
molecool's picture

No, George is dead.

Thu, 09/30/2010 - 16:35 | Link to Comment MsCreant
MsCreant's picture

You look at this site and say that?

George is very much alive. He just ain't viral yet.

Thu, 09/30/2010 - 14:29 | Link to Comment Everyman
Everyman's picture

I keep telling you guys nothing is going to change until these assholes are shot in the head.

They are criminals and operate with impunity and consider themselves beyond the law.

The shooting is gonna start because the law, the government, the regulators, and the markets are all fucked.

There is nothing left but the actions of an injured and cornered madman.

Thu, 09/30/2010 - 14:32 | Link to Comment Something Wicke...
Something Wicked This Way Comes's picture

Finally a voice of reason emerges.

Thu, 09/30/2010 - 14:36 | Link to Comment CU1981
CU1981's picture

+7.62

Thu, 09/30/2010 - 14:53 | Link to Comment Vergeltung
Vergeltung's picture

+7.62 x 39   :)

 

Thu, 09/30/2010 - 15:37 | Link to Comment Everyman
Everyman's picture

Put some powder behind it and use AMERICAN:

7.62 x 55  NATO

Thu, 09/30/2010 - 14:37 | Link to Comment LeBalance
LeBalance's picture

"There is nothing left but the actions of an injured and cornered sane man."

There, fixed it for you.

Thu, 09/30/2010 - 16:13 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Thank you. Using the other interpretation (the orginal quote above) feeds into "their" propaganda and indoctrination meme that "only" the deranged and insane would push back against "their" nirvana.

Thu, 09/30/2010 - 14:31 | Link to Comment Something Wicke...
Something Wicked This Way Comes's picture

Holy fuck Batman, "do you know what this means??"

Nothing Robin. Now move along boy, nothing to see here.

Thu, 09/30/2010 - 14:33 | Link to Comment DonS
DonS's picture

Back when I was on the street in the mid 90s a good friend of mine had a client who was a high ranking retired army general from texas who has roads/schools freeways named after him (since passed away). In any event, he (the general) told my friend (the broker) of every fed policy decision on interest rates (up 1/4, down 1/4 up 1/2 etc..) a year in advance of the decision. The general was spot on. It was truly f in amazing. I guess this type of thing has been going on for quite some time.

Thu, 09/30/2010 - 14:33 | Link to Comment Racer
Racer's picture

It is about time we had another Peasant's Revolt!!!

http://en.wikipedia.org/wiki/Peasants%27_Revolt

 

Power to the People and thank you ZH for your work in showing the abuse that is going on

Thu, 09/30/2010 - 14:34 | Link to Comment t0mmyBerg
t0mmyBerg's picture

Note that Larry Meyers is not a member of the FOMC, nor was he on August 10th.  So that means he must have talked to someone who was ( Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Donald L. Kohn; Sandra Pianalto; Eric S. Rosengren; Daniel K. Tarullo; and Kevin M. Warsh or Thomas M. Hoenig) and then included that information in his report to clients.

So he is not under any duty about that information as he is not on the board, but that someone would feed him the information for further dissemination is clearly wrong.

Thu, 09/30/2010 - 14:35 | Link to Comment Ripped Chunk
Ripped Chunk's picture

Great piece. As the curtain is slowly pulled back to reveal the wizard with his ass hanging out. 

Thu, 09/30/2010 - 14:35 | Link to Comment Something Wicke...
Something Wicked This Way Comes's picture

Tyler, would you please report this to the S.E.C? ROTFLMFAOOOOOOO

Thu, 09/30/2010 - 14:35 | Link to Comment rle1221
rle1221's picture

Well, at least they didn't have to pay for hookers to get the info.

Thu, 09/30/2010 - 15:36 | Link to Comment cmalbatros
cmalbatros's picture

Or have 1 die in mysterious circumstances. P.S. what he did is legal but immoral.

Thu, 09/30/2010 - 14:37 | Link to Comment NOTW777
NOTW777's picture

disgusting criminals.

Thu, 09/30/2010 - 14:39 | Link to Comment Sokhmate
Sokhmate's picture

The Cabal Bitchez.

Thu, 09/30/2010 - 14:40 | Link to Comment Everyman
Everyman's picture

Another one sent into the FEDRES OIG.  We will see if they do anything.

Thu, 09/30/2010 - 14:40 | Link to Comment Buttcathead
Buttcathead's picture

I still aint gunna by nuttin...  I knew they was cheating again.  duh no Sh_t. lol

Thu, 09/30/2010 - 14:40 | Link to Comment jsavage
jsavage's picture

gasp!

Thu, 09/30/2010 - 14:40 | Link to Comment wiskeyrunner
wiskeyrunner's picture

It's a rigged always has been, now that every house has a computer and broadband folks are waking up.

Thu, 09/30/2010 - 14:41 | Link to Comment Something Wicke...
Something Wicked This Way Comes's picture

Gross buying bonds on margin. You have to be fucking kidding me. I am laughing so fucking hard right now that I am crying. You sons a bitches really do need a trip to that big oak tree on the outskirts of town.

Thu, 09/30/2010 - 14:42 | Link to Comment Shameful
Shameful's picture

Wow only 75k?  What a bargain!  Good have it written in stone that the rich get richer and the poor get poorer.

Thu, 09/30/2010 - 14:43 | Link to Comment Leo Kolivakis
Leo Kolivakis's picture

Buy solars! Lots of window dressing going on today!

Thu, 09/30/2010 - 15:37 | Link to Comment MsCreant
MsCreant's picture

Rare earths bitch.

Thu, 09/30/2010 - 16:29 | Link to Comment Cui Bono
Cui Bono's picture

MsC, Leo always forgets his lithium!

Thu, 09/30/2010 - 16:36 | Link to Comment MsCreant
MsCreant's picture

Nice!

Thu, 09/30/2010 - 15:40 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

How about physical?  I am with you on that 100%!

Thu, 09/30/2010 - 16:14 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

I though solar was physical? At least it feels physical to me. :>)

Thu, 09/30/2010 - 16:47 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Sun sun sun, here it comes!

Thu, 09/30/2010 - 16:49 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Sun sun sun, here it comes!

Thu, 09/30/2010 - 19:47 | Link to Comment Cathartes Aura
Cathartes Aura's picture

". . .little darlin', I feel that ice is slowly meltin'. . ."

wake up call.

Thu, 09/30/2010 - 14:43 | Link to Comment Quinvarius
Quinvarius's picture

Just be glad they haven't started a war yet.

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