Jim Grant: "The Fed Is Now In The Business Of Manipulating The Stock Market...Should Confess It Has Sinned Grievously"

Tyler Durden's picture

Jim Grant, who will never be accused of being a fan of the Criminal Reserve, and whose views on what will happen to asset prices in a printer-happy world are gradually being validated, appeared on Bloomberg TV, telling Margaret Brennan upfront that Bernanke owes the world an apology. Alas, after various revolutions around the world have been catalyzed by Bernanke's policies, we have a feeling that ever more oppressed people will soon see the Printer in Chief as a patron saint of violent revolution, alas against crony regimes fully supported by the US (and hopefully the US will view it the same way when its time comes). That aside, Grant's criticism of the Fed should really start to grate on the Chaircreature: "I think what would be very good for the Fed if there would be a confession, the Fed should confess that it has sinned grievously, and is in violation of every single precept of its founders and every single convention of classical central banking. Quantitative Easing is a symptom of the difficulties that the Fed has created for itself. The Fed is running a balance sheet which if it were the balance sheet attached to a bank in the private sector would probably move the FDIC to shut it down. The New York Branch of the Fed is leveraged more than 80 to 1. Meaning, that a loss of asset value of less than 1.5% would send it into receivership if it were a different kind of institution...The Fed is now in the business of manipulating the stock market." Jim also has some very critical discussions on how the Fed never settles up on the $3.4 trillion in custodial debt on its books. As always, we can't get enough as more and more mainstream figures turn to bashing that biggest abortion of modern capital markets.

Full interview

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Wynn's picture

66(.6)% of the respondants view Bernanke favorably?

there, fixed it

unwashedmass's picture

i loved that intro. they must have spent days locating all of ben's relatives.....

bloomberg is now officially CNBC with a bigger vocabulary and more professional looking charts.

SWRichmond's picture

...and Margaret.  Don't forget Margaret.

NOTW777's picture

forgot to mention it was a poll of PDers

Temporalist's picture

The poll was for "investors" not just "respondents" so...of course the people sucking off the Fed love The Bernank.

Zero Govt's picture

End the Fed, they're doing it all by themselves... the NY Fed is leveraged 80/1, they're supposed to be regulators for fuks sake... they're going after insider trading with a balance sheet looking more criminally negligent and with lower assets to liabilities than Bernie Madoffs ponzi scheme... you couldn't make this shit up after 3 days straight of LSD!!! 

bonddude's picture

Banksters die like these ones.

A New York Times affiliate goes to war against a crooked failed board and mgmt.


El Hosel's picture

   80% are not paying attention and "have no idea"...Yet

TruthInSunshine's picture

by Ragnarok
on Fri, 01/28/2011 - 16:06

End the Fed!


I'm trying!

Bastiat's picture

Jim Grant's a hero -- one of the few back in the 90s who was pointing out how inappropriate and dangerous derviatives were to municipal issuers.

ghostfaceinvestah's picture

Agreed, he actually had some good calls during the crash as well, recommended a few good convertible bond names.  Definitely a sharp guy.

Freddie's picture

Jim Grant has always been a straight shooter.  He is a good guy.

Rick64's picture

 He is dead on. We need someone like him to head the treasury instead we have incompetents like Timmy which was no accident. Why would the head of the NY Fed be promoted to Secretary of Treasury when NY is where all the fraud was taking place right under timmys nose?

Cleanclog's picture

Medicated and manipulated.  Can't we arrest the Fed via the WAR on Drugs?

TruthInSunshine's picture

I mean this sincerely:  Ultimately, when the truth about The Federal Reserve Bank is revealed, whether in one year or 10, for mass consumption, it will be cast as a financially terroristic organization...and rightfully so.

All politicians who shelter, defend, provide excuses for or otherwise impede the disclosure of what The Fed is doing, and impede its dismantling, do so at their own peril.

EscapeKey's picture

Hey, the stock market ended down. That wasn't what I was promised. I want my money back.

Thomas's picture

Just cover yer margin call and back up the truck!

Thomas's picture

I keep fucking up the arithmetic problem.

drbill's picture

Yes, the FED is a problem, but its central banking that is the real root of all our problems. As long as bankers have the power to create money (and use it to buy politicians), nothing will change.

hedgeless_horseman's picture

The New York Branch of the Fed is leveraged more than 80 to 1.

And that is probably based on mark-to-aquisition price, aka mark-to-unicorns-and-fairy-dust.

Clockwork Orange's picture

HEY!!  They could play in the Gold futures!!

Clockwork Orange's picture

HEY!!  They could play in the Gold futures!!

aleph0's picture

"Criminal Reserve"

Love it  ...

Tyler , are you of Irish descent ? 
You certainly have the "Gift of the Gab"

Diggintunnels's picture

R, D, Tea Party, Coffee Party, I don't care what political stripe you are; everyone should support a full audit of the FED.  We deserve accountability.

slewie the pi-rat's picture



audit the beast.

then kill it.

New_Meat's picture

real published audit --> system collapse

I'd prefer time as much as possible to prepare.

Temporalist's picture

He and Marc Faber should have a genetically mutated love child that stalks banksters around the globe making them confess.


Edit: And the mutant child shall eat only gold.

Misean's picture

Nobody expects the Bank Inquisition...Amongst our weaponry are such things as...

Misean's picture

Nobody expects the Bank Inquisition...Amongst our weaponry are such things as...

Misean's picture

Nobody expects the Bank Inquisition...Amongst our weaponry are such things as...

Temporalist's picture

Amongst our weaponry are such things as...multiple superfluous posts?

Misean's picture

Meh...The Hedge was bogged. Got spooked and began strapping on the bandeleros when a MRE fell on the keyboard.

Temporalist's picture

Hysterical.  Just don't go poking anyone with the "SOFT CUSHIONS!"

spanish inquisition's picture

I am in charge of the comfy cushions thank you...

Came in late on a CNBC conversation, missed who said it. Something like the FED is inflicting screwflation on the middle class.


Our two weapons are fear and surprise...and ruthless efficiency..

New_Meat's picture

MRE-three letters, four lies

traderjoe's picture

I'm a bit surprised that someone like Grant - who seems to understand money - references the FRN as the "Greenback". One could argue that this term for the dollar has become widespread, but the Lincoln Greenback was a Treasury-issued currency. Issued without debt and interest to criminal central bankers. It was a marked shift from the central-bank issued money (through debt) and likely got Lincoln killed. To a true money-guy, this is a massive distinction/difference. 

Boilermaker's picture

Great point!  Can we now debate the term 'buck' or 'cabbage'?

Cursive's picture


Exactly. And I'd love to bring the greenback back. End the FRB. Of course, this shouldn't diminish Jim Grant's excellent analysis.

oogs66's picture

Yup. Stock market up. Mortgage rates higher and food inflation scaring the world. Ben must be calling 60 minutes so he can tell everyone he would give himself an A++ as he is doing everything right and answered the bonus question correctly. Pompous ivory tower ass!!

Freddie's picture

Didn't The Ben Bernank tell 60 Minutes that he can stop inflation in 15 minutes? 

Billy Shears's picture

Yeah, he can stop it anytime...he just doesn't want to...na na na na na!

SpeakerFTD's picture

NFLX straight vertical at day end.   Whatever it takes to keep the QQQQs from collapsing.


buzzsaw99's picture



Boilermaker's picture

I love how the twinkie from Bloomberg doesn't understand what he's saying so she resorts to giggling and being dismissive. 

That's the problem with trying to actually present something of substance.  People are too fucking stupid to understand it and start to tune out almost immediately.  Now, if you were to have a sound effects board and bite the head off of clay bears...