Friday, August 28, 2009

Federal Reserve Says Disclosing Loans Will Hurt Banks

Our financial leaders are up to it again, attempting to hold the American public hostage if we don't let them have their way. The Federal Reserve has been ordered to release information relating to financial institutions that benefited from emergency actions by the Fed, the Fed has steadfastly refused, calmly stating:

“The immediate release of these documents will destroy the board’s claims of exemption and right of appellate review,” the motion said. “The institutions whose names and information would be disclosed will also suffer irreparable harm.”

The Fed’s “ability to effectively manage the current, and any future, financial crisis” would be impaired, according to the motion. It said “significant harms” could befall the U.S. economy as well.

Hmmm, so our own money is used to bail out institutions and we aren't allowed to know anything about it because our financial system would suddenly be plunged into the abyss, at least part of this sounds familiar.

Remember last fall when then Treasury Secretary held a gun to our head and told us if we didn't pass TARP and spend a $1 trillion dollars the financial world would fall apart.......and then we passed it and the financial world fell apart? This is a variation on that play, essentially if we force the Fed to be transparent the financial system will collapse.

Is it me or has the Federal Reserve not exactly served its purpose? Is the Federal Reserve the new CIA? Ben Bernanke the ultimate financial spook? Just who is Bernanke trying to protect? This is all starting to have the feel of a Grisham/Brown type book, except its real.

Its time the Fed comes clean on a lot of things (including backdoor monetization...more on that later).

Scott Dauenhauer CFP, MSFP, AIF