abitare (99.33)

Vox Day - Out of Ammo

June 01, 2009 – Comments (2) | RELATED TICKERS: SWHC , RGR , GLD

Last week, Barack Obama declared that the U.S. was out of money. Today, General Motors is expected to file for bankruptcy, which is an ominous sign in a land where the financial health of the automotive giant has long been considered a proxy for the financial health of the nation. And California looks increasingly likely to go bankrupt in the near future. And yet, in a nation without money, Bloomberg has reported that the Federal Reserve has loaned out 7.8 trillion dollars without telling anyone where it has gone.

The American people don't know. Congress doesn't know. No one seems to know; the video of the exchange between Rep. Alan Grayson of the House Subcommittee on Oversight and Investigations and the inspector general of the Federal Reserve Board of Governors is more darkly comedic than anything the Daily Show has shown in years.

Grayson: So are you telling me that nobody at the Federal Reserve is keeping track on a regular basis of the losses that it incurs on what is now a $2 trillion portfolio?

Coleman: I don't know if … you're telling me that there's … you're … missing … that there are losses. I'm just saying that we're not … until we actually look at the program and have the information, we are not in a position to say whether there are losses or to respond in any other way to that question.

Grayson: Mr. Chairman, my time is up, but I have to tell you honestly, I am shocked to find out that nobody at the Federal Reserve including the inspector general is keeping track of this.

Bloomberg also noted that the combined total of the loans and payouts given by the Federal Reserve, the U.S. Treasury, the Federal Deposit Insurance Corporation and the Department of Housing and Urban Development was $12.8 trillion as of March 31. This is equal to 90 percent of the U.S. economy, and would have been more than enough to pay off every single mortgage in the United States – not just every problem mortgage headed for default and foreclosure, but every home loan in the country! The fact that this money has not been given to mortgage borrowers but rather to mortgage holders demonstrates that neither the White House nor the Federal Reserve are genuinely concerned about homeowners losing their homes, except for the way in which their loan defaults are destroying the value of the mortgage-backed securities sold by the banks that are the presumed beneficiaries of the government and central bank largesse.

(Column continues here)

http://www.wnd.com/index.php?fa=PAGE.view&pageId=99740

MY COMMENT: Vox goes on to conclude that the FED is out of paper bullets.

Fooldom has already seen the video above, because I posted it. Fooldom also knows the local gun store is out of ammo, because I told you six months ago there was a panic into guns and ammo. BTW - they are both out of ammo and hopefully, you are not.