Mr. Catch is the messenger !
If I recall properly, this data was "forced" from the FED by a "Freedom of Information" request by Michael Bloomberg/Bloomberg. The request did move into the court system from my recollection; and obviously, the request was upheld. I also recall, having followed this FOIA request at the early stages; that Mr. Bernanke offered more or less the following statement that "release of this information would cause inflation." Is this the best "excuse" that could be thought from the meeting rooms of the FED? I suspect the $1.2 Trillion may be a low number, but enough to satisfy the request. Who the heck is allowed to do a real audit ?
Otherwise; as I will offer a personal thought, "some conspriracies are not theories." Yes, you may wholly presume that I am not a fan of the FED system; and the machinations since 1913. I will state that I also have a very small understanding of the interconnections of the FED, Treasury and the large banks of the banking system; and MUST use this in place system to help define our investment decisions; whether I care or not for THE SYSTEM.
http://www.bloomberg.com/news/2011-08-21/wall-street-aristocracy-got-1-2-trillion-in-fed-s-secret-loans.htmlRegards,
Catch
Comments
Nothing will get done, nothing will be learned, nothing will change.
I recall actually hearing/seeing the statement about inflation when his was speaking somewhere. I do not throw out this type of info willy-nilly; and will attempt to find the statement. He may have stated what you note in addition.
OH, I know he didn't say it shouldn't be released; as he/they had they backs against the wall.
I did not obtain or note any of my statement was from a blog, etc.
If I can not find the statement I am looking for in a timely manner, I will adjust my statement.
These may or may not be twisted or perverted or other. I have not investigated the valid status.
http://www.businessinsider.com/bernanke-quotes-2010-12
Everyone take care,
Catch
I would be most curious to find a quote that links inflation and the reluctance of releasing the record of who got what money. Hopefully, full context of the quote is preserved. I do not think inflation is used in this context.
Having said that, I am sure he probably said things that might have turned right or wrong later on regarding inflation.
I do not envy his position. I personally think he is doing a great job with the limitations of his tools and it is a dismal job without recognition or even sympathy. He is an easy target every day and he cannot even respond to tasteless attacks from politicians such as crony capitalist Ricky. It is very dangerous to politicize the Fed. Left to politicians for daily influence, we can expect much bigger mess.
Fed is not perfect but right now its the only tool left as politicians try to impose straightjacket economic policies to bring political gain at the expense of economic collapse.
Also, the figure simply adds the each loan. Yet, a significant amount of that number is rollover of previous loans but added to total each time to make the number to look much more dramatic. Bogus accounting from press to create sensation or perhaps outrage. Otherwise, there would not be need for reporting like:
"Denominated in $1 bills, the $1.2 trillion would fill 539 Olympic-size swimming pools."
I am glad Fed extended these loans. The only way to stop bank runs and prevent a major collapse is increasing the liquidity and satisfying the needs of scared public at the moment. They have not done this in the great depression and 20,000 banks failed. Today the economy is global. If so lending to banks that can cause systemic risks to US is also not too strange. Yes, it is too easy to be critical of the Fed after the fact. Public, is getting only part of the message. The alternative was ugly. I am not fan of Paulson but even he got it right to inject money into banks with Tarp to arrest the contagion from spreading. We now know it was the right thing as Europe is still struggling with too little capital in their banks.
Take a look at below. What Bernanke has done is also complete agreement with Milton Friedman.
http://www.econreview.com/events/banks1929b.htm
Here is the relevant part.
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A reasonable question might be "How could the government let the money supply fall like this?" Milton Friedman, author (with Anna Schwartz) of A Monetary History of the United States, 1867-1960, provides us with the answer.
"We did learn something from the Great Depression. ... We learned that you ought to have numbers on the quantity of money. If the Federal Reserve System in 1929 to 1933 had been publishing statistics on the quantity of money, I don't believe that the Great Depression could have taken the course that it did."1
The data on the quantity of money during the Depression was calculated after the fact by researchers such as Friedman and Schwartz. At the time, economic theory did not suggest that changes in the quantity of money could cause business cycles and, consequently, money supply statistics were not published.
1Milton Friedman and Walter W. Heller, Monetary vs. Fiscal Policy: A Dialogue, W.W. Norton & Company, Inc. (1969), pp. 79-80.
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Bernanke did the right thing. Fed did what it is supposed to do. And keeping the loan receivers at the time was necessary to prevent bank runs.
I can not readily find a video and/or statement from Mr. Bernanke regarding your reply to my write about "inflation". I do not have more time to spend on this; so I will have to maintain that I recall seeing him utter this statement; but can not offer the proof.
Take care,
Catch