Monday, October 18, 2010

So when will the Fed call its lawyers? Does the Fed have an STD? And when will "The Men who knew too much" resign?

Chris Whalen was on Bloomberg TV just now with Mark Crumpton. He related in his new book, "Inflated" we have effectively turned our banks into operating REITs - correct; but no surprise. Forecloures' predictable AND inescapable, dimunition of property tax revenues and related state, county and local gummint budget woes. (Within the inevitable backdrop, indeed march of IT servicing and outsourcing, not only in the just released IBM current earnings but in the "forecast".) And this - MBS trusts which are generally required under NY law to hold both original notes and mortgages often forgot this little detail.

His response to Mr Crumpton's final question - "So what are (MBS) investors doing?"
Mr Whalen replied "...contacting their lawyers".

Since the Fed owns near "200 hundred stories tall" ~$2T of the stuff, acquired by way of removal, absent any 3rd party independent due diligence or valuation in the Fall of 2008 from certain banks predominantly from a certain Federal Reserve Bank district east of the Hudson; for reasons undisclosed.

When, this taxpayer asks, on behalf of all current and future US taxpayers and global creditors, will the Federal Reserve "Contact its lawyers?"

When will the Fed, bearing undeniable, ultimate fiduciary responsibility to all US citizens - CALL ITS LAWYERS TO:
2) When will the Obama Administration and/or Congress, conduct a real investigation, and reveal the truth and begin to investigate and remove Mr Bernanke and Mr Geithner?

Both have failed in series:
1) in the PAST - prior to the so called financial crisis;
2) in 2008 by allowing certain otherwise failed institutions to remain in business;
3) Since 2008, continuing to perpetuate half truths about the reasons for the so called financial crisis and actions related thereto.

We can and should forgive their mistakes or errors in judgment due only to incomplete information; but not known errors, certainly not when possessed of near perfect information - indeed, these two ARE and Mr Paulson, the "Men who knew too much..."

And the previous post October 3 and later on the issues surrounding the Fed's ownership of MBS trust securities STDs (securities transmitted diseases) with potentially toxic titles.

Ending the siesta on the US taxpayers dime - one easy to read blog at a time.

Not my first rodeo.
Since 2004, my office issued annual, 1 page FiduciaryALERTS™. It’s not about me being right or lucky because I’m half Irish it's about this - recognizing the obvious. For instance, July 2008's “Denial of Twin-flation™ is not a prudent investment strategy” Copies available.

McFid, BFD expert, since 2003. (BFD means breach of fiduciary duty)
McFid the combination of McConnell, whose family Irish crest heralds "Not for himself" and fiduciary.
Copyright © Chris McConnell & Associates 2003 to 2010 All rights reserved

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