Posted on 06/10/2009 9:57:31 AM PDT by mikelike
Key quote from this interview (must-see!):
"If the Fed examiners were set upon the Fed's own documents—unlabeled documents—to pass judgment on the Fed's capacity to survive the difficulties it faces in credit, it would shut this institution down," he said. "The Fed is undercapitalized in a way that Citicorp is undercapitalized."
This guy is not a "nobody" either - he's a major force in the bond market, editor of a very well-recognized publication since 1983. Ignore him at your peril.
Yeah, I know, The Fed issued some new disclosure today. It of course shows them "well-capitalized". So did Bear Stearns' financials, so did Lehman. All were dependent on ratings issued by.... who again? And the models are provided by who again? Not the same folks who were so dramatically wrong about virtually every credit class over the last two years, right?
Uh, yeah.
Balanced budget amendment.
Jim Grant = very, very sharp guy, and has been for a few decades. He’s also kinda funny.
publisher of:
“Grants’ Interest Rate Observer”
'New York Attorney-General Andrew Cuomo has claimed that, in 2008, then-Treasury Secretary Hank Paulson and Federal Reserve Chairman Ben Bernanke strong-armed BofA into buying Merrill -- a move that, if true, could expose Paulson and Bernanke to prosecution.'
Thanks for posting I always read his stuff!
Right. Smoke and mirrors
How can the Fed be bankrupt when can print their own money?
If you watch the video you will see. If they are audited it will be shown that their assets are far less than the money they have printed and allocated for themselves.
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