WTF?

"After announcing that it would buy $900 billion in U.S. Treasury bonds in the next six months, Fed Chairman Ben S. Bernanke said in an opinion article that the move was aimed in part at spurring a stock rally so as to increase the wealth of businesses and stock owners." Full article HERE

Call me crazy but this is once AGAIN the wrong direction. Just 2 weeks ago Bernake boy toy Geitner said "It is very important for people to understand that the United States of America and no country around the world can devalue its way to prosperity, to (be) competitive,It is not a viable, feasible strategy and we will not engage in it."

Getting froggy, hope we can survive a few more years.

Jason

III

Submission to the Federal Reserve Board Members

From an e-mail i got from a friend, I thought it was a well done open letter and deserved distribution.


To Mr. Bernanke and the Federal Reserve Board Members,

What a difference just a few weeks and a few Fed minutes can make....
As I have feared, all of this talk by Mr. Bernanke in regards to the need for additional stimulus, including possible large scale asset purchases, has again caused the U.S. Dollar to depreciate, and for the stock market to engage in "irrational exuberance" in regards to all hard and soft commodities!!!

METALS, GRAINS, CHEESE, MEATS, EGGS, COTTON, FEED, OIL, ETC. HAVE ALL SKYROCKETED, THESE INPUT COSTS FOR FOOD, FUEL, CLOTHES AND DIAPERS WILL BE PASSED ON TO THE CONSUMER RIGHT AWAY, BECAUSE THESE ARE THINGS WE HAVE TO HAVE...

BUT WAIT, YOU DON'T LOOK AT THESE THINGS THAT I MUST HAVE TO LIVE, YOU ONLY LOOK AT CORE INFLATION EXCLUDING FOOD AND FUEL...
SO IT WILL TAKE ABOUT 4-6 MONTHS FOR THESE HIGH COMMODITY COSTS TO MOVE THE CORE INFLATION NEEDLE enough to get your attention, BUT I TAKE AN IMMEDIATE HIT FOR FOOD AND FUEL WHICH MEANS I HAVE LESS DISCRETIONARY INCOME TO SPEND, AND WHAT ABOUT THE INPUT COSTS THAT COMPANIES ARE UNABLE TO PASS ON?? WHAT IS THE END RESULT: MORE JOB'S LOST........

THIS STOCK MARKET RALLY IS THE DIRECT RESULT OF A DECLINING DOLLAR, AND THE DECLINING DOLLAR IS THE DIRECT, OR AS SOME WOULD ARGUE THE INDIRECT RESULT OF FEDERAL RESERVE POLICIES!
I THOUGHT IT WAS THE JOB OF THE U.S. TREASURY TO SET DOLLAR POLICY???
THIS WILL NOT END WELL, ANY TIME THE FED ATTEMPTS TO INFLATE ASSET PRICES AND THE STOCK MARKET THINKS IT IS WAGGING THE DOG, IT ENDS WITH A POP!!!

Please just stop what you are doing and begin to back yourselves out of the corner, allow commodities to correct, allow interest rates to rise, allow people to continue to pay down their debt and build up their savings accounts, instead of pumping it into the gas tank or the dinner table. Reward savers with some kind of return on their hard earned money, and let the stock market go ahead and throw a hissy fit, let it correct 20% or more, and then it can get back to fundamentals for valuations instead of empty headed QUANTITATIVE EASING SPECULATION.... The retail investor has bailed on the stock market and you are hurting them more by artificially propping up the stock market, and artificially keeping interest rates low.

THIS FIXATION WITH THE EVILS OF DEFLATION NEEDS TO MODERATE, IF YOU KEEP ON FUELING ALL OF THIS SPECULATION, YOUR JUST GOING TO MAKE MY LIFE AND MILLIONS OF OTHER AMERICANS WHO DID NOTHING TO CAUSE THIS MESS A WHOLE LOT MORE EXPENSIVE AND A WHOLE LOT LESS SATISFYING....

But what do I know, I'm just an unemployed high school graduate, middle class nobody with an 800+ credit score, who owns his home, has zero debt, and, an actual savings account that you guys are actively and intentionally depreciating.

I'M A PART OF THE "NO YOU CAN'T CROWD" WHO IS BEING FORCED TO FINANCE

THE "YES WE CAN CROWD"


REGARDS,
XXXX XXXXX

DOJ sues Arizona...why you ask????

There are a few things in the gov'ts brief that I can agree with:

"In our constitutional system, the federal government has preeminent authority to regulate immigration matters. This authority derives from the United States Constitution and numerous acts of Congress."
"Although states may exercise their police power in a manner that has an incidental or indirect effect on aliens, a state may not establish its own immigration policy or enforce state laws in a manner that interferes with the federal immigration laws."
However here is where it goes a little hinky:
"Assuring effective enforcement of the provisions against illegal migration and unlawful presence is a highly important interest, but it is not the singular goal of the federal immigration laws." While not the singular goal, a pretty f'n big one.
"See 8 U.S.C. § 1304(e). The INA provides that any alien who fails to comply with this requirement may be fined and imprisoned not more than 30 days. See id.; 18 U.S.C. § 3571." hmmmmmmmm, if Arizona asks for this FEDERALLY REQUIRED ID we are racists, and causing a conflict of federal laws.
"Through a variety of programs, DHS works cooperatively with states and localities to accomplish its mission to enforce the federal immigration laws." Wait a minute here, so local authorities CAN arrest and detain under federal law?
"S.B. 1070’s mandate for verification of alien status will necessarily result in a dramatic increase in the number of verification requests being issued to DHS, and will thereby place a tremendous burden on DHS resources, necessitating a reallocation of DHS resources away from its policy priorities" But a page or so back it was stated that handling immigration WAS a DHS priority, it is called ICE (Immigration and Customs Enforcement)for Christ's sake. There is much, much more HERE I cannot believe their basic arguments are:
1. It is a federal issue, and even though we are not doing it, it is our game. You are not allowed to play... This is plainly contradicted not only in the brief, but dailyby local law enforcement and state laws dealing with Federal laws. E.G.- Firearms, Alcohol, Tobacco, Speed Limits on Federal roadways, Drug Use, Safety Standards, Building Codes, Lending Laws... and the list can go on and on.
2. Since our above argument sucks, we the Federal Government think that this will make us do a part of our job...and we think it will be really hard.
This whole boondoggle pisses me off, I STAND WITH ARIZONA, and so should you. If this is pushed too hard the citizens of Arizona will start pushing back. As Mike Vanderboegh has said before on federal laws..."they were protecting YOU from US"

Take heed, stay safe,
Jason
III

An Alternative

1.End the Federal Reserve
Now on face value this seems a bit drastic to some, but along with other items it becomes necessary. The Reserve has a direct history of abuse of trust and power. A quick Google search documents plenty of this.
2.Reduce Government Waste
Not just "welfare", but most of the "intelligence" and "regulatory" commissions. For a quick look at inefficiency watch CSPN, The wasted time with "the distinguished gentleman" crap is laughable. Our "defense" spending has risen in this era of Empire chasing. These effect us not only monetarily, bust also physically and philosophically.
3.Reduce Federal Government, by re instituting States Rights.
4.Allow the "bottom to drop" if the market demands it. It will and has rebuild back to neutral, that is the balance as needed.

Four simple steps, they may cause pain, strife and even tragedy for some. Not to be callous, but sorry. We must return to individual accountability and responsibility. I am sure I have missed a few points but wanted to cover a brief outline of an alternative to the Federal idea of private sector Bailouts.
Look too the past to guide you in the future.
David Crockett : Not Yours To Give
Banking is bad?
Money as Debt
Thomas Jefferson

Jason
III

Final Request?

In a last ditch effort of "civilly acceptable" areas to address my opposition, I wrote all of my federal legislators with a message similar to the one below.



Dear Sir,

I cannot stress how much I disagree with the current idea of a "bailout" package. Granting more power to the Treasury department and Federal Reserve is the exact opposite of what directions we need to go as a country. The financial meltdown the economists of the Austrian School predicted has arrived and we need to heed the warnings of "Mises", "CATO", and other conservatives of free market, limited government. I cannot and will not support ANY member of congress, or local seat who votes to affirm this disastrous path. I will do everything in my power to make sure that any oppositions to those who vote for this bailout are successful. Thank you for your time, please consider your constituents wishes as you meet on this topic.



Jason XXXXX

I honestly do not believe they give a rats ass, but it is my last shot before I completely abandon all faith in any legislators. God save us, the end is near..... For the first time in my adult life I am genuinely afraid that the end is near. Do what you can while you can, hopefully clearer heads may prevail.

Jason

III

Treason By Any Other Name

LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITYTO PURCHASE MORTGAGE-RELATED ASSETS

Section 1.

Short Title.This Act may be cited as ____________________.

Sec. 2.

Purchases of Mortgage-Related Assets.

(a) Authority to Purchase.--The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States.

(b) Necessary Actions.--The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation:

(1) appointing such employees as may be required to carry out the authorities in this Act and defining their duties;

(2) entering into contracts, including contracts for services authorized by section 3109 of title 5, United States Code, without regard to any other provision of law regarding public contracts;

(3) designating financial institutions as financial agents of the Government, and they shall perform all such reasonable duties related to this Act as financial agents of the Government as may be required of them;

(4) establishing vehicles that are authorized, subject to supervision by the Secretary, to purchase mortgage-related assets and issue obligations; and

(5) issuing such regulations and other guidance as may be necessary or appropriate to define terms or carry out the authorities of this Act.

Sec. 3.

Considerations.

In exercising the authorities granted in this Act, the Secretary shall take into consideration means for--

(1) providing stability or preventing disruption to the financial markets or banking system; and

(2) protecting the taxpayer.

Sec. 4.

Reports to Congress.

Within three months of the first exercise of the authority granted in section 2(a), and semiannually thereafter, the Secretary shall report to the Committees on the Budget, Financial Services, and Ways and Means of the House of Representatives and the Committees on the Budget, Finance, and Banking, Housing, and Urban Affairs of the Senate with respect to the authorities exercised under this Act and the considerations required by section 3.

Sec. 5.

Rights; Management; Sale of Mortgage-Related Assets.

(a) Exercise of Rights.--The Secretary may, at any time, exercise any rights received in connection with mortgage-related assets purchased under this Act.

(b) Management of Mortgage-Related Assets.--The Secretary shall have authority to manage mortgage-related assets purchased under this Act, including revenues and portfolio risks therefrom.

(c) Sale of Mortgage-Related Assets.--The Secretary may, at any time, upon terms and conditions and at prices determined by the Secretary, sell, or enter into securities loans, repurchase transactions or other financial transactions in regard to, any mortgage-related asset purchased under this Act.

(d) Application of Sunset to Mortgage-Related Assets.--The authority of the Secretary to hold any mortgage-related asset purchased under this Act before the termination date in section 9, or to purchase or fund the purchase of a mortgage-related asset under a commitment entered into before the termination date in section 9, is not subject to the provisions of section 9.Sec. 6. Maximum Amount of Authorized Purchases.The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time

Sec. 7.

Funding.

For the purpose of the authorities granted in this Act, and for the costs of administering those authorities, the Secretary may use the proceeds of the sale of any securities issued under chapter 31 of title 31, United States Code, and the purposes for which securities may be issued under chapter 31 of title 31, United States Code, are extended to include actions authorized by this Act, including the payment of administrative expenses. Any funds expended for actions authorized by this Act, including the payment of administrative expenses, shall be deemed appropriated at the time of such expenditure.

Sec. 8.

Review.

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

Sec. 9.

Termination of Authority.

The authorities under this Act, with the exception of authorities granted in sections 2(b)(5), 5 and 7, shall terminate two years from the date of enactment of this Act.

Sec. 10.

Increase in Statutory Limit on the Public Debt

.Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting in lieu thereof $11,315,000,000,000.

Sec. 11.

Credit Reform.

The costs of purchases of mortgage-related assets made under section 2(a) of this Act shall be determined as provided under the Federal Credit Reform Act of 1990, as applicable.

Sec. 12.

Definitions.

For purposes of this section, the following definitions shall apply:(1) Mortgage-Related Assets.--The term “mortgage-related assets” means residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before September 17, 2008.(2) Secretary.--The term “Secretary” means the Secretary of the Treasury.(3) United States.--The term “United States” means the States, territories, and possessions of the United States and the District of Columbia.

What the F*(K??

Have they not read the United States Constitution?

Jason

III

Bailout(s)

First, Fannie Mae and Freddie Mac:
"In an unprecedented rescue effort, the Treasury Department and the Federal Housing Finance Agency seized control of the two mortgage giants Sunday, replacing the firm's chief executives and pledging to provide up to $200 billion in order to stem losses and keep the companies afloat."
Details


Second, AGI:
"In a bid to save financial markets and economy from further turmoil, the U.S. government agreed Tuesday to provide an $85 billion emergency loan to rescue the huge insurer AIG."
Details


Third,?????
God I wish I liked taxes, and believed the Fed was even constitutional.

Image and another foretelling blog of this fiasco

From an editorial February 2008
"The recession will cause a sharp increase in defaults in all other forms of unsecured consumer debt such as credit cards, auto loans, student loans, etc. As the Fed Loan Officers Survey suggests, the credit crunch is spreading from mortgages to consumer credit, and from large banks to smaller banks, it is becoming clear that the losses are much higher than the $10-$15 billion rescue package that regulators are trying to put together. The Monolines are actually borderline insolvent if not out and out bankrupt and none of them deserves a AAA rating regardless of how much recapitalization is provided. Any business that requires an AAA rating just to stay in business is a business that does not warrant an AAA rating. However, any downgrade of the Monolines will lead to another $150 to $250 billion of write-downs since it will also lead to huge losses on their portfolio of Muni Bonds. Just their downgrade will spillover into large losses and potential runs on the Money Market Funds that have relied on those AAA ratings. The Money Market Funds that are backed by banks or that bought liquidity protection from banks against the risk of a fall in the NAV may avoid a run, but such a rescue will exacerbate the capital and liquidity problems of their underwriters. Any Monolines' downgrade would lead to another sharp drop in US equity markets already shaken by the risk of a severe recession and large losses in the financial system but worst of all, to a general loss in overall CONFIDENCE."
Details

Jason

III