Posted by Karl Denninger
Why does this assclown continue to hold his office? Why do we, the people, and Congress (via the people) tolerate this crap?
“It is unconscionable that the fate of the world economy should be so closely tied to the fortunes of a relatively small number of giant financial firms,” Bernanke said today in a speech in Orlando, Florida. “If we achieve nothing else in the wake of the crisis, we must ensure that we never again face such a situation.”
If it is “unconscionable” then you had no business doing it, irrespective of the consequences.
Folks, that’s a particularly-severe term – unconscionable. Go look it up. It means “unscrupulous, unreasonable or excessive.”
So Bernanke now admits that he took unconscionable acts. Yet, at the same time, he resists this:
The U.S. Court of Appeals in Manhattan ruled today that the Fed must release records of the unprecedented $2 trillion U.S. loan program launched primarily after the 2008 collapse of Lehman Brothers Holdings Inc. The ruling upholds a decision of a lower-court judge, who in August ordered that the information be released.
The Fed had argued that disclosure of the documents threatens to stigmatize borrowers and cause them “severe and irreparable competitive injury,” discouraging banks in distress from seeking help. A three-judge panel of the appeals court rejected that argument in a unanimous decision.
So unconscionable actions taken by Bernanke must then be defended to the point of maintaining secrecy – perhaps so that the true nature of the outrage – that is, the actual impact, effect, and reality of those unreasonable and unscrupulous acts do not boomerang back on him and the rest of the Feral Reserve?
Exactly who is being protected here? The court says the arguments made by The Fed are BS:
The U.S. Freedom of Information Act, or FOIA, “sets forth no basis for the exemption the Board asks us to read into it,” U.S. Circuit Chief Judge Dennis Jacobs wrote in the opinion. “If the Board believes such an exemption would better serve the national interest, it should ask Congress to amend the statute.”
How about the truth?
How about the fact that The Fed has overstepped its authority? How about perjury? How about willful and intentional attempts to cover up the actions of a chartered institution?
How about the sort of actions that led President Jackson to dissolve The Second Bank of The United States?
Folks, monetary policy can be controlled and operated by a computer. Or, if we require a “human touch”, we can do so by actually enforcing the law!
You know, The Federal Reserve Act, which mandates that long-run credit aggregate growth be commensurate with GDP? The act that The Fed has willfully and intentionally ignored for the last 50 years, and, as a consequence has led us to an over-levered economy with excessive debt burden?
That burden, by the way, is why our economy is not truly recovering and can’t. The proper solution to this problem is for Congress to enact an expedited consumer bankruptcy statute that allows the full discharge of indebtedness – and restoration of mark-to-market. While this would (as expected) cause one to become instantly “un-credit-worthy” for an extended period of time (perhaps the whole 7 years for which it can remain in your credit report) the fact remains that this would also result in an immediate clearing of the market and bankruptcy of the lenders who made irresponsible loans.
Or how about “Prompt Corrective Action”, the law that mandates that all bank supervisory agencies, including The Fed, not permit an institution to operate while doing things like Lehman did – and which we now have evidence that The Fed was aware of (due to a complain by Merrill) and in fact Bernanke lied about that very matter, under oath, in front of Congress?
There are no particularly-difficult problems when it comes to banking regulation. “One dollar of capital” stops 90% of the BS and if you lock up every executive that countenances or commits an act of balance-sheet fraud or off-balance-sheet games the rest of the BS disappears too.
Bernanke needs no new authority.
What he needs is for The Fed to lose the authority it has – via revocation of its charter.