Monday Thoughts – The Fed is Acting Illegally

4.5.2010

Apparently, the Federal Reserve Bank was finally forced to disclose its actions after Bloomberg’s Freedom of Information Act requests were upheld by the courts (small victory for freedom in this era of government power grabbing).

Revealed – assets bought from the failed Lehman Brothers portfolio are worth at most, 44 cents on the dollar and the Fed has been actively trading securities in this portfolio (including some exotic holdings). Buying non-treasury-guaranteed securities is not supposed to be permitted under the Federal Reserve Act and certainly trading in exotic holdings is not allowed either, but they are doing it.

For more color, read articles by the always excitable Karl Denninger¬† here and here on Fed admitting to ‘breaking the law,” and by Zero Hedge here on the fact that the Fed has interest rate exposure totalling $3 trillion! WTH!

I think it’s time we all fired the ENTIRE government…