The battle goes on concerning The Fed refusing to tell us where it spent our tax dollars during the bail out flurry which caused public outcry and anger. We have done a series of posts on the events which are centered now on a lawsuit that has made its way in to the federal appellate court. The Fed is arguing the chicken little "the sky will fall in on all of us" if the public finds out what we did with their money:
Banks and the Fed warn that bailed-out lenders may be hurt if the documents are made public, causing a run or a sell-off by investors. Disclosure may hamstring the Fed’s ability to deal with another crisis, they also argued.(Bloomberg). As pointed out in previous articles, so far the federal courts have not bought into the chicken-little thingy, so they have ordered The Fed to disclose what it did.
Stay tuned ("The Fed" lost their appeal, Bloomberg's FOIA request was upheld).
The next post in this series is here., the previous post in this series is here.
Should be in interesting. Actually, I'd like to think that revelations of the details would cause considerable moral populist outrage and maybe even a bank run or two, as a crisis of confidence is actually the correct response to the current shenanigans IMO. Make no mistake, I'm under no illusion that any of that's gonna happen this time around, but the next collapse, with a tapped-out Fed helpless to stop it, should be a little more illustrative as to the true depths of our current fiscal problems. Won't we have fun then!
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ReplyDelete"the details would cause considerable moral populist outrage and maybe even a bank run or two"
For sure.
Already there are movements where people are urged to take their money out of banks that are "too big to fail" and put them in local banks.