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Old 04-02-2010, 04:24 AM
 
12,869 posts, read 14,002,224 times
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The Fed Admits To Breaking The Law - The Market Ticker
The problem is this: The Fed is not authorized to BUY anything other than those securities that have the full faith and credit of The United States.

In addition Ben Bernanke has repeatedly claimed that these deals would not cost anyone money. But the current value looks differently:

Assets in Maiden Lane II totaled $34.8 billion, according to the Fed, which set their current market value in its weekly balance sheet at $15.3 billion. That means Maiden Lane II assets are worth 44 cents on the dollar, or 44 percent of their face value, according to the Fed.

Maiden Lane III, which has $56 billion of assets at face value, is worth $22.1 billion, or 39 cents on the dollar, according to the Fed’s weekly balance sheet. A similar calculation for the Bear Stearns portfolio couldn’t be made because of outstanding derivatives trades.

In other words, they have lost more than half of their value.

This was and remains a blatantly unlawful activity.

The Fed has effectively usurped Article 1 Section 7 of The Constituion which reads in part:

All bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.

The Fed effectively appropriated taxpayer funds without authorization of Congress. At the time these facilities were put in place neither TARP or any other Congressional authorization existed for them to do so, and to date no bill has been put through Congress authorizing the expenditure of taxpayer funds, either through putting them at risk or via outright expense, for this purpose.

Nor does it stop with a "mere" Constitutional violation - The Federal Reserve Act's Sections 13 and 14 do not permit Fed asset purchases except, once again, for items carrying "full faith and credit" guarantees. Credit-default swaps and trash mortgages most certainly do not meet these qualifications. (end quote)

again, the moral hazard of getting away with this type of behavior cannot be overestimated. whose job is it to ENFORCE THE LAWS again?????? we have a government in place that seems to have abdicated its responsibility.
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Old 04-02-2010, 05:20 AM
 
10,494 posts, read 25,141,808 times
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What exactly does this mean for us?

thanks
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Old 04-02-2010, 06:01 AM
 
Location: Conejo Valley, CA
12,470 posts, read 18,639,307 times
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Quote:
Originally Posted by las vegas drunk View Post
What exactly does this mean for us?

thanks
That a pit to hell is going to open up underneath sin city, you know sort of like in little nicky.
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Old 04-02-2010, 08:10 AM
 
Location: Texas
2,847 posts, read 2,221,145 times
Reputation: 1755
and its been going on for a while now

Is the Fed rigging the stock market?- Top Stocks - MSN Money
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Old 04-02-2010, 08:21 AM
 
50 posts, read 72,589 times
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Default federal reserve broke the law

uhm, just add it to the list.
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Old 04-02-2010, 10:00 AM
 
20,856 posts, read 62,443,139 times
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The last time anyone in government read the Constitution was when Haig said he was in charge.
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Old 04-02-2010, 10:22 AM
 
Location: Portland, Oregon
7,090 posts, read 11,404,215 times
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LoL, every week it's the same thing. You should really put your money where your mouth is and start a movement just to get rid of it. Otherwise, just another armchair revolutionary. Sit there typing away on forums hoping some one will get motivated by the idea and do it themselves, instead of doing anything about the beliefs that you spout. It's just plain laziness and cowardice.

I'm pretty indifferent, because without a reserve or inflation (with a growing population) there will be deflationary spiraling and little economic control. Everybody with capital will become more and more wealthy as people chase fewer dollars, while those without it (either without capital now, or people getting born later) will become poorer and poorer. No loans, money will be worth more later then it is now, so no interest can be paid and debts will need to be paid back to zero. Without much control, political action won't be able to effect economic cycles...lows become lower, highs will bubble even larger (think tulips).

I already have massive amounts of capital, which will only increase as time goes along if it happens.

Honestly, either work towards what you believe or stop paying lip service to something you are unwilling to put any effort into making real.

Last edited by subsound; 04-02-2010 at 10:47 AM..
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Old 04-02-2010, 02:01 PM
 
12,869 posts, read 14,002,224 times
Reputation: 4453
Quote:
Originally Posted by subsound View Post
LoL, every week it's the same thing. You should really put your money where your mouth is and start a movement just to get rid of it. Otherwise, just another armchair revolutionary. Sit there typing away on forums hoping some one will get motivated by the idea and do it themselves, instead of doing anything about the beliefs that you spout. It's just plain laziness and cowardice.

I'm pretty indifferent, because without a reserve or inflation (with a growing population) there will be deflationary spiraling and little economic control. Everybody with capital will become more and more wealthy as people chase fewer dollars, while those without it (either without capital now, or people getting born later) will become poorer and poorer. No loans, money will be worth more later then it is now, so no interest can be paid and debts will need to be paid back to zero. Without much control, political action won't be able to effect economic cycles...lows become lower, highs will bubble even larger (think tulips).

I already have massive amounts of capital, which will only increase as time goes along if it happens.

Honestly, either work towards what you believe or stop paying lip service to something you are unwilling to put any effort into making real.

if you were indifferent, you wouldn't have replied at all.
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Old 04-02-2010, 02:30 PM
 
Location: Portland, Oregon
7,090 posts, read 11,404,215 times
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Quote:
Originally Posted by floridasandy View Post
if you were indifferent, you wouldn't have replied at all.
Words are cheap, especially for the bored.

Which is exactly what I am saying to you, words are cheap and worth what people give them out for. If you really believe in your values, you would stand up and act instead of cry on a message board about the terrible injustice. Then your values and ideals are worth even less then the words.

If you refuse to act on your own principals and values, they aren't worth acting on by anyone.

Last edited by subsound; 04-02-2010 at 02:42 PM..
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Old 04-02-2010, 02:45 PM
 
12,869 posts, read 14,002,224 times
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for further clarification, i will post two links - the Federal Reserve Mandate:

<b>The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy's long run potential to increase production</b>, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.

[12 USC 225a. As added by act of November 16, 1977 (91 Stat. 1387) and amended by acts of October 27, 1978 (92 Stat. 1897); Aug. 23, 1988 (102 Stat. 1375); and Dec. 27, 2000 (114 Stat. 3028).]

FRB: Federal Reserve Act: Section 2a

now that we know the law the Fed was supposed to follow - to keep credit in line with GDP... let's see what they actually did:

http://market-ticker.denninger.net/u...olute-debt.png (broken link)

ONE CHART SAYS IT ALL

They took credit parabolic relative to GDP for over a decade. (swarm usa)
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