< HOME  Friday, August 14, 2009

The Fed's Missing 9 Trillion$

Apparently nobody at the Federal Reserve has any clue where the trillions of dollars that have come from the Fed's expanded balance sheet have gone. Additionally, nobody there seems to have any idea what the losses on the Fed's $2 trillion portfolio really are.

As for the pittance of $9 trillion in Fed off-balance sheet transactions over the past 8 months, well, yeah, that's also somewhere out there... Just don't ask the Federal Reserve where.

Rep. Alan Grayson summarizes it best "I am shocked to find out that nobody at the Federal Reserve is keeping track of anything."

This video
is a must watch for anyone who wants to understand just how "effective" the Fed is at safeguarding taxpayer money.

References:
http://zerohedge.blogspot.com/2009/05/federal-reserve-can-not-account-for-9.html
http://www.nakedcapitalism.com/2009/05/federal-reserve-inspector-general.html
Bernanke to Congress: I Don't Know to Whom We Gave Half a Trillion Dollars

1 Comments:

At Saturday, August 15, 2009, Blogger Greg Bacon said...

Let's see, let me take a guess.... Hmm, some is sitting in Israel's Bank Leumi and Hapoalim and the rest?

It got moved to off shore entities that use some of that cash to prop up the stock market and some to buy up T-bills that China doesn't want.

 

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