Fed Doing A Helluva Job- Professional Edition

Seven or eight months ago the Fed was worrying publicly about how it was going to shrink its balance sheet because that’s what the pundits were worried about. So they started a pilot program to do tri party reverse repos with money market funds. I said at the time that the idea was laughable and absurd because the payoffs from their MBS holdings would shrink the balance sheet involuntarily. The Fed didn’t have to do anything, and it would shrink by itself.

Fast forward to half a year later and the Fed announces a program designed to prevent the balance sheet from shrinking. Am I allowed to say that this shows yet again the Fed is clueless, delusional, incompetent, and only acts when the shit hits the fan? Here we are, 6 or 7 months from the time that the Fed was floating all kinds of trial balloons about shrinking the balance sheet, and they are forced to enact a program to stop it from doing just that.

These buffoons, these clowns, these jerks, had no clue that the picture of growth in the economy was nothing more than a flimsy Hollywood movie set, produced, directed, and sets designed by Tim Geithner and Ben Bernanke, with the Fed fronting the money and the American middle class ultimately left holding the bag. Elderly savers have been viciously destroyed in this process. The benefits that younger workers have paid for are being stolen.

What a disgrace these people are. In a just world, they would be facing criminal charges, but in this Wonderland NO ONE is ever held responsible for their criminal malfeasance. Instead, all we do is bail out all the bond holders and the big Wall Street banks, at taxpayer expense, so that the criminal executive class can go right on skimming, and then lining the pockets of the politicians. Meanwhile, the fools who keep lending the Treasury the money to play these scams lend even more money.

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Tags: 3 Month, 7 Months, Balance Sheet, Ben Bernanke, Bond Holders, Buffoons, Central Banks, Criminal Charges, Critical Forces, Eight Months, Executive Class, Helluva Job, Herd, Jerks, Liquidity, Machinations, Malfeasance, Money Market Funds, Payoffs, Pilot Program, Professional Edition, Pundits, Repos, Shit Hits The Fan, Skimming, Taxpayer Expense, Thirty Days, Tim Geithner, Trial Balloons, Wall Street, Wall Street Banks

This entry was posted on August 11, 2010 at 3:15 pm and is filed under Money and The Fed, Professional Edition. You can follow any responses to this entry through the RSS 2.0 feed.