The Fed Has a Raging Case of Cooties. Srsly.
Let me make this painfully clear for Ben Bernanke, the Fed, and anyone who is still confused on the issue:
Let's pretend the Fed is bipolar and on medication and lots of it. Lithium, Prozac, Paxil, you name it. Out of its cotton-picking mind, as it were, and not all that connected to reality. Does it make it any less crazy if it fails to disclose the medication it is on to stabilize said insanity? I don't think so.
The U.S. Federal Reserve on Wednesday said it will appeal a court ruling that ordered it to identify borrowers using its emergency lending programs, and it requested an emergency stay of the ruling until the case is resolved.Ok, how about another example?
The Fed said in a 25-page court brief that revealing the lending information would cause irreparable harm to the Fed and to depository institutions.
Releasing certain reports about the Fed’s lending would seriously undermine its “ability to administer lending programs crucial to maintaining the health of the nation’s financial system,” Fed lawyers said in the brief.
At issue is a New York federal judge’s Aug. 24 ruling that sided with Bloomberg News, which had filed a lawsuit seeking information about the Fed’s lending programs.
U.S. District Court Judge Loretta Preska ordered the Fed to turn over documents and seek more information from the New York Fed, which is administering many of the programs launched in response to the financial crisis.
News organizations and certain members of Congress have been seeking increased disclosure from the U.S. central bank as its balance sheet has ballooned during the financial crisis due to its efforts to stabilize the economy. Organizations have been seeking the names of firms borrowing from the Fed as well as specific information about collateral pledged for loans through facilities including the Fed’s discount window and primary-dealer credit facility.
Fox News Network LLC made one such request and lost in front of a different federal judge in New York. Dow Jones & Co. made a similar request that was denied by the Fed. News Corp. owns Fox News and Dow Jones & Co., publisher of this newswire.
The Fed historically hasn’t released the information, believing that disclosure would lead to negative speculation about a borrower’s financial health.
Say you're dating the Fed. Work with me on this, people, I'm trying to help you visualize.
You're dating the Fed and think everything is all unicorns and rainbows. You might even let the Fed get some backdoor action because, you know, you're all blinded by love and lust and OMG isn't the Fed the greatest?
Meanwhile, the Fed is screwing every chick in town. Because this is not disclosed, does this make your raging case of crabs any less real?
That's what I thought. Just chew on that one for a minute, kids. Seriously, JDA is just here to help.