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New York Fed Responds To Neil Barofsky
After one of the most scathing reports ever written about FRBNY's pandering to its Wall Street lobby interest, it was only a matter of time before the NY Fed put some lip service to protecting itself as an "independent" organization. Some of the points from the report:
We believe that the Federal Reserve acted appropriately in conducting these negotiations and that our negotiating strategy, including the decision to treat all counterparties equally [and Goldman more qually than more], was not flawed or unreasonably limited. After the U.S. Government had determined that AIG was systemically important and had acted to prevent its disorderly failure, it was natural for all of AIG's creditors, including its counterparties on multi-sector CDS, to expect full payment from the company and to believe that the company would noe be in a position to demand concession from its counterparties on their claims.
Once again FRBNY: please look up the term "moral hazard" in the OED and tell us whose picture (hint Tim Geithner) accompanies the definition.
Yet what is most refreshing is that even the FBRNY now seems to acknowledge the need for the passage of the Audit The Fed bill:
The Report addresses the value of transparency, which we share. We have taken a number of significant steps with the objective of increasing the information publicly available about the Federal Reserve and its lending programs so that the Congress and the public can more effectively assess our efforts in pursuit of [making Goldman Sachs the overlord of the Milky Way Galaxy, as the earth has long been taken over] financial stability and monetary policy objectives. Among these steps is regular publication on our website of comprehensive information about ML III and other Federal Reserve facilities. Altogether, we now provide more information about the operations of the Federal Reserve than ever before, and we continue to explore whether additional information can be provided without jeopardizing the effectiveness of our efforts.
We agree. We must audit you immediately. And legislation has to pass to that extent now, and not be delayed by Barney Frank or castrated by BofA lap dog Mel Watt.
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What a bunch of BS!! These guys need to be eliminated.........we need full disclosure and ACCOUNTIBILITY!!
It was very nice of them to be so equal with other people's money. Thank God for transparency, it's important to know when you're being sodomized and by whom, that makes it less uncomfortable...almost down right pleasant. Keep up the good work NY Fed and Mr. Secretary.
What i hear when FRBNY speaks:yadda, yadda, yadda.
I've always said the most exceptional creative writing is not by some run-of-the-mill Pulitzer prize winning author but the purveyors and enablers of the Ponzi.
Exhibit number one is the above Appendix D.
Those second rate Pulitzer authors can be found below. No comparison.
http://www.amazon.com/s/?ie=UTF8&keywords=pulitzer+prize+winning+books&tag=googhydr-20&index=stripbooks&hvadid=3135740781&ref=pd_sl_13hm7667wf_e
Don't know if this is an inappropriate venue for this, but I am thinking about starting a think tank that will work to stick a thumb in eye of the fed and the other deflation monkeys. There are tons of think tanks that develop ways redistribute the wealth that is skimmed off the american worker to the third world. Anyone in D.C. interested in this? I need help.
Actually, check this one out. It is hard to believe, but some think tanks CAN do good in this world.
http://www.pewcenteronthestates.org/
From the same people who recently brought you Beyond California: States in Fiscal Peril
http://www.pewcenteronthestates.org/report_detail.aspx?id=56044
In a world gone crazy its refreshing to know that some things remain constant. One can always count on folks in a leadership position in the US to claim that all problems have been fixed thank-you-very-much whenever they are faced with undeniable evidence of greed, incompetence, and general douchebaggery.
Look forward, not backward! Now more than ever! Synergy! Attorney client privilege! Mistakes were made!
Correct - I will have to say after reading this passage:
The Report addresses the value of transparency, which we share.
The cognitive dissonance of that made me throw up in my mouth a little.
"The cognitive dissonance of that made me throw up in my mouth a little."
Go ahead and just swallow that back down. It's a normal reaction when your programing is showing signs of age and you're in need of a refresher course.
Please take 2 weeks of non stop viewing of CNBC, ABC, CBS, NBC, CNN and of course FOX (please remember to leave your TV on while you sleep for direct insertion of programming into your brain) and come back to see me when you're done.
Next!
It made me throw up alot in my hand
SUMMARY from NY Fed response:
We dont effin care.
It's nice to know that we can be told the truth in drips and drabs, a measured IV of BS and doublespeak that slowly eases its way into the national conciousness so that the taxpayers never become too aware of their surroundings or the fact that they are being milked repeatedly.
It's not paranoia if they are really out to get you.
Just wait until congress passes the credit limit increase "because it's for the good of the country".
The NY Fed can say whatever it wants because the People have completely lost their capacity for critical analysis and thinking in general. We need to first demand more from ourselves and then we can demand more from others.
Which is why nature has something called "survival of the fittest".
It's not just the Fed. It is all of us. The language we use has been whitewashed to be less than harsh, probably an extension of Dr. Spock and self-esteem philosophy run amock.
My favorite is "lack of transparency". Okay what is that? Some environmental disorder or are there actual people with names and faces telling lies and being dishonest? No one is a liar or a fraud anymore, it's all just "lack of transparency", so cute, so non-confrontational. We musn't hurt anyones feelings now.
It's worse than just 'not hurting someone's feelings'...it's just total ass-covering denial of responsibility. (Which by the way is actually the opposite of healthy self-esteem, but your point is understood.)
I wonder how long before the 'lack of transparency' phrase trickles down to my elementary kids' vocabulary.
I agree. I noticed the slippery slope pick up speed around 1985 or so when more and more politicians and corporate execs began talking about "consumers" rather than "citizens" in America. While this might seem like a subtle change, it's all part of the selling of America.
After all, the only obligation of a consumer is to mindlessly gorge at the trough without question, examination or consequence. On the other hand, the obligations of a citizen are many and varied and among the first is to be responsible for self, community and country, not always in that order.
But like any five year old, the average American is simply waiting around for permission to do what we really want to do rather than what we should be doing. All children and plenty of adults will attempt to manipulate you into giving permission without all the facts.
Personally I think that's one of the reasons why we don't wish to hold these bastards accountable. Any close and through examination of this mess wouldn't be complete without a long hard look at ourselves. After 25 years of unaccountable consuming and excess, many Americans would rather sweep the entire mess under the rug than look in the mirror.
Please Uncle Ben, pump up those housing prices one more time so I can pay off those credit cards, dump the house and get out of town before everyone else.
Even Fed Reserve Counsel Thomas C. Baxter IV wouldn't sign the letter himself; he had his secretary sign it for him. A little plausible deniability?
I don't think Mr. Barofsky will appreciate a bullshit letter like this.
I'm guessing he fully expected it.
Agreed. All official traceable communications made by or within the gubmint are for official bullshit purposes only. That includes Fed Minutes.
All REAL communications and decisions take place on the smoker's patio.
What a crock of BULLSHIT. Federal reserve is the most corrupt and criminal organization on the entire planet right now.
Cant say it better. Who in the right mind would be willing to pay more than what was asked for? Thats not sound economics at all....unless of course its not your money you are paying with. Well, I guess people buying into the markets now would fit that bill as well since fundamentals are way out of whack.
Also, if I am on the verge of bankruptcy from trading risky investments. Who do I call to get 100 cents on the dollar for my trading losses?? I feel that in this life of mine, I am too big to fail also.
TinyTim Geithner is the sorriest excuse of a human being, much less Treasury Secretary - ever.
Please don't be angry with little Timmy for he's just the puppet. May I suggest we all follow the strings on up to their source?
Poor Timmy has that perpetual look on his face of someone in a compact car that's about to be run over by a long line of Hummers. He's just the man on the string hoping he makes it out of the car crash alive, just in time to be strung up my the mob.
Why did they reference a "negotiating strategy".
"After the U.S. Government had determined that AIG was systemically important".
Name names. Who in the "government" made the final call? Is the FRBNY part of our government? When did that happen?
That's a key part of their deniability. The FRBNY is not part of the government (officially), although the Fed and the Treasury are so connected it's hard to imagine anyone actually believes they don't act as government agents.
Somewhere in the vestiges of a corner office in the West Wing, a man is reclining in his chair, drinking his 5th Diet Coke of the day-- and laughing his proverbial @$$ off.
mewonders if his brain is rotting from all the aspertame.
Tim was taking orders from PAULSON. I can't understand putting a hedge fund manager as Sec. and expecting anything different. Yes, he should have stood up to the boss, but that's easier said than done.
Look at the nature of every deal. Pure hedge / LBO mentality. Sure, Jamie, you can have Bear, what's she worth. 2. Wait, they are pissed, givem 10. Fannie, Freddie dump them on the gov where they belong. Screw the preferreds. Lehman, Lord Blanky says let them burn, good for GS. Whoops, that got out of hand AIG, ML, MS, C, BAC, etc. are all going too, let's draw the line Tim, save AIG, ban the shorts whatever the F it takes....
All so easy to see coming. Hire a hedgie to run the gov book, what do you expect? It's like putting Cox at the SEC and thinking it's not a green light to the crooks.
Not defending Tim, but please. Paulson is the ONE.
What is the deference between Federal reserve and New york fed.
The Federal Reserve System is composed of 12 regional banks. The NY FED is the most powerful regional bank because they are in NY and implement FED policy via the open market desk.
http://en.wikipedia.org/wiki/Federal_Reserve_System#Structure
http://en.wikipedia.org/wiki/Federal_Reserve_Bank_of_New_York
Turbo Timmy (said like Lily Tomlin):
We're the Fed, we don't care. We don't have to. You see that (snort-laugh snort-laugh snort-laugh), I just spent $100B of taxpayer money to funnel money in full from AIG to Goldman Sachs and JPM so they can continue taking me out to 5-star restaurants so we can enjoy $480 per plate dinners and $600 bottle of wine. So what the US taxpayer is getting hosed, I don't care. No one ever gets prosecuted in my line of work because we are too big to jail.
We're the Fed, we don't care. We don't have to.
Suggested music for this article is by Global Underground, song titled "I Got Cash." That is what the Fed says to US taxpayers. Once you hear it, you'll KNOW...
anonymouse, nice one but the name of the band is brooklyn funk essentials:
http://www.last.fm/music/Brooklyn+Funk+Essentials/_/I+Got+Cash
the track is on one of global underground cds.
(for those who like the music that marla spins, the dub mix is where it's at.)
"we now provide more information about the operations of the Federal Reserve than ever before, and we continue to explore whether additional information can be provided without jeopardizing the effectiveness of our efforts."
Translated: "we now provide so much useless voluminous information so as to overwhelm even the most circumspect reader so as to truly mask the illicit barbarism and the operative workings of our draconian order."
This is (one of the reasons) why I drink.