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This is a partial excerpt of the ZeroHedge post
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When Will Tim Geithner, Who Has The "Biggest Conflict Of Interest", Recuse Himself Of Fed Audit Deliberations?
Submitted by Tyler Durden on 05/05/2010 16:14 -0500
Painful common sense from Alan Grayson:
“The Fed doesn't want to be audited. Who does? Do you want to be audited? I don't want to be audited, but sometimes it's necessary,” he said. “When you're handing out a trillion dollars at a time -- a trillion dollars at a time, which works out to $3,000 for every man woman and child in this country -- don't we have a right to know what happened to it?”
Grayson added: “It's central to the bill. We've had secret bailouts from the Fed to private interests now for the past two years without any exposure whatsoever. … We need to know what happened to our money, because when the Fed hands out our money, every dollar in your pocket, every dollar in your checking account, every dollar in your 401(k) becomes that much cheaper and less in value.”
In retrospect it is really much simpler: the Fed will only retain its secrecy as long as it can keep pushing the market higher, and as long as it can force the middle class to empty out their money markets and throw their money into bankrupt retailers trading at one million P/E. Once the market tumbles, it is game over. The Fed knows it, the president knows it, and Geithner certainly knows it. Which is why we expect massive resistance by the Fed and all the "liquidty providers" and "market makers" to allowing the Ponzi formerly known as the market, to reach its true fair value (absent from endless fiscal stimuli and ZIRP insanity)... somewhere in the 400-500 S&P range.
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Great stuff no? Be sure and read the complete ZeroHedge post by clicking here...
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Greg
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