After eight years of Bush aren't you curious?

The Mortgage Debt was in a precarious state, when Paulson took a bazooka to the problem. Recall Congressional Republicans thought the stimulus plan was a fraud. The American people were against it, and then the marketing boys went to work changing YOUR mind.

Fear is a powerful tool, and Paulson threatened Congressional types with riots and martial law. I don't know what these bastards have put in the water, but Americans can't seem remember what they had for breakfast. We are in denial over a polkicy of threats and lies used against us, since 9/11, for partisan and ideological purposes.

Now we are seeing the first indications that the current administration is beginning to unwind the web of deceit. Watch carefully, when they are done, the bottom line will be reveal this truth: Most of what happened to the housing market, the economy, and the stock market, didn't need to happen.

The reaction to those in the Financial press was really shock and awe. After reading the Fed's Japan Deflation paper, with authors Krugman and Bernanke evident throughout, it is apparent that their opinion is that pre-emptive reflation would have prevented the problem in the Japanese deflation, during the 90's. The U.S. stock market is still around the level it was in 98'. Does that seem like a crash to you?

And if bank stock share price has nothing to do with bank reserves, and depositors accounts, then why did the administration panic?

I've been sceptical of the banking crisis from the beginning. The money center banks and the credit union system were conveniently firewalled. CU's are still granting 5% down home loans.

The question is, did banks fall on their own, or were they pushed? Last night Shiela Barr made a counter intuitive remark, she said that the share price of the bank stock has nothing to do with the viability of that bank for you the depositor. Huhhhhh?

Isn't that why Paulson and company hit the panic button last October. Yesterday Bernanke said, that at the moment, last October, that the global financial system was on the verge of collapse.

Now as elected official XYZ my next question would be, really?

Tell me more. Show me the facts. Reveal to me what was said. Give me YOUR reasons why you thought the economic system was on the verge of collapse, and why I shouldn't suspect that this was just one more front in a political and partisan war.

Democrats were worried Bush would attack Iran. That was a bait and switch. Now I want to know, where was the cause of this banking crisis. Even if you can't swallow the conspiracy theory, you must consider the facts on the ground, at the time. Everyone was aware of the fragile notion of the credit derivative markets, that these private party agreements could never be marked to market. Then someone yelled fire inside a crowded room.

Bernanke is in the awkward position of justifying the behavior of his previous boss, and the man who appointed him, but this is where Congressional investigations need to begin. What was said, and who said it? What were the facts. Who put out the information of the Weapons of Financial Destruction.

follow the money follow the money follow the money

Isn't the Federal Reserve privately run? Wouldn't their balance sheet require some government help before Treasury could intervene. How do you get the regulators to regulate the banks, which is the Fed's role without usurping the Fed's power?

You could of course rescind the Fed chiefs power, which is possible. That in no way alters the Fed's mandate. You could change the Fed's mandate, if Congress took over control of the money supply which was granted to them in the Constitution.

Bernanke said the Fed hasn't the authority to run the banks. But he has spoken before on material issues, and then spoken belatedly out of the other side of his mouth. Will Obama grant him that authority?

The Fed/Treasury relationship is very complicated, incestuous, and subversive. What happened to the PPT, Plunge Protection Team. One suspects it still exists, but has been made irrelevant. Is the Fed therefore irrelevant? Their authority to buy bad assets has been employed, so they still seem to be manageing some of their duties.

Will Congress fulfill their Constitutional duty? Will Obama find someone even more compliant than Bernanke? I doubt it, he is a political survivor, and will run the Fed for twenty years at least.