This is the fed's current chairman
This is the fed's current chairman
Ron Paul nails Bernanke in a lie!
Last edited by Moot; 07-26-12 at 06:06 PM.
There is a two year lag between the Feds adjusting interest rates and their effect on the economy. In 2001, Greensapn started lowering interest rates. By 2003 the housing bubble had started. In 2005, after recommending people buy adjustable mortages when the interest rates were at their lowest ever, a few month later he started raising interest rates. By 2007, the housing bubble started to burst and people started losing their homes because of the ARM loans that Greenspan had recommended they buy.Following the September 11, 2001 attacks, the Federal Open Market Committee voted to reduce the federal funds rate from 3.5% to 3.0%. Then, after the accounting scandals of 2002, the Fed dropped the federal funds rate from then current 1.25% to 1.00%. Greenspan stated that this drop in rates would have the effect of leading to a surge in home sales and refinancing. Besides sustaining the demand for new construction, mortgage markets have also been a powerful stabilizing force over the past two years of economic distress by facilitating the extraction of some of the equity that homeowners have built up over the years.
However, according to some, Greenspan's policies of adjusting interest rates to historic lows contributed to a housing bubble in the US. The Federal Reserve acknowledges the connection between lower interest rates, higher home values, and the increased liquidity the higher home values bring to the overall economy.
"Like other asset prices, house prices are influenced by interest rates, and in some countries, the housing market is a key channel of monetary policy transmission." — Board of Governors of the Federal Reserve System, September 2005.
In a speech in February 2004, Greenspan suggested that more homeowners should consider taking out Adjustable Rate Mortgages (ARMs) where the interest rate adjusts itself to the current interest in the market. The fed own funds rate was at a then all-time-low of 1%.
A few months after his recommendation, Greenspan began raising interest rates, in a series of rate hikes that would bring the funds rate to 5.25% about two years later. A triggering factor in the 2007 subprime mortgage financial crisis is believed to be the many subprime ARMs that reset at much higher interest rates than what the borrower paid during the first few years of the mortgage.
Alan Greenspan - Wikipedia, the free encyclopedia
Yes indeedy, Greenspan is at the very top of the list for causing the economic crisis.
Last edited by Moot; 07-26-12 at 07:50 PM.
Banks getting government loans to pay back government loans?“TARP wasn’t supposed to be just a bank bailout,” said Christy L. Romero, the special inspector general for TARP, in an interview. “It was specifically designed with the goal of helping homeowners, and our concern is that that goal may not be met.”
As of the end of 2011, the Hardest Hit Fund had spent $217.4 million out of its $7.6 billion budget, the report found. The program is intended to reach homeowners who are unemployed, or living in areas with high unemployment rates or steeply falling home values.....
Treasury Department buying banks troubled assets for two or three times what they are really worth?"Of the 707 banks that received taxpayer money from the government's Troubled Asset Relief Program starting in 2008, also known as TARP, about half have repaid the Treasury.
However, 137 of those banks used a government-loan program to repay their taxpayer debts, according to the quarterly report to Congress of the Office of the Special Inspector General for TARP.
Of the 325 banks still propped up with taxpayer money, 203 have missed dividend or interest payments, with some missing as many as 13 payments since receiving capital injections at the height of the financial crisis, the report said.
TARP banks use fed loans to repay government - Business - US business - NBCNews.com
Treasury Department preventing regulators from doing their job.......In a report dated February 6, 2009, the Congressional Oversight Panel concluded that the Treasury paid substantially more for the assets it purchased under the TARP than their then-current market value. The COP found the Treasury paid $254 billion, for which it received assets worth approximately $176 billion, for a shortfall of $78 billion. The COP's valuation analysis assumed that "securities similar to those issued under the TARP were trading in the capital markets at fair values" and employed multiple approaches to cross-check and validate the results. The value was estimated for each security as of the time immediately following the announcement by Treasury of its purchase. For example, the COP found that the Treasury bought $25 billion of assets from Citigroup on October 14, 2008, however, the actual value was estimated to be $15.5, creating a 38 percent (or $9.5 billion) subsidy....
Troubled Asset Relief Program - Wikipedia, the free encyclopedia
I don't think anyone really knows where the money is or has gone. Except maybe Geitner and the Federal Reserve. Which is why an audit would probably be a good idea and then next good idea would be to indict Geitner.“The suspicions that the system is rigged in favor of the largest banks and their elites, so they play by their own set of rules to the disfavor of the taxpayers who funded their bailout, are true,” Mr. Barofsky said in an interview last week. “It really happened. These suspicions are valid.” ....
Geitner is corrupt, here is a pic of this unsavory character.
'Documents Reveal How Paulson Forced Banks To Take TARP Cash'
Read more: Documents Reveal How Paulson Forced Banks To Take TARP Cash - Business Insider
There is no way that a massive electronic run on the money markets to the tune of $550 billion in a one hour time frame was coming from the public at large. So if Paulson was threatening those nine banks, then I suspect they were likely the ones trying to collapse the economy.
Last edited by Moot; 07-26-12 at 11:52 PM.
The Fed is a central bank except it's a central bank with no accountability. It needs to be nationalized and put under the purview of the congress as per the constitution being that the congress has the power of the purse. Then all of it's dark hidden corners will be a matter of the public record.