While the Fed is busy shaking its own hand over its newly-discovered commitment to transparency, it's also buckling down for war. The unwashed masses banging down the fortress demanding answers? Nope. Lathered-up protesters hauling around End the Fed signs? Nah. Congressional idiots who have finally learned how to harvest brain cells in Petri dishes and insert them into their empty skull cavities? Haha, yeah right.
Revealing the particulars of the Fed's Maiden Lane holdings (I, II, and III for those of you playing along at home) has left a giant gaping wound right in the Fed's gut and you better believe the rest of the world is going to go right for the infectious weak spot.
While much of the Fed-watching contingent considered their upcoming Monday meeting a discount rate pow-wow (thanks to the Fed's own carefully-crafted announcement, obviously), JDA isn't afraid to wildly speculate nor put her neck out and say this is a strategy meeting more than anything else. As in defenses up and weapons ready for the assault that is about to be aimed directly at our esteemed central bank as a direct consequence of details revealed in the Maiden Lane release this past week. Wow that AIG thing really didn't work out in our favor did it?
(read the rest via Jr Deputy Accountant)