Brad Delong wonders what is going on as we rail against the excesses of the Fed. I posted a response and am reposting it here:
I know what is going on. The Federal Reserve allowed off balance sheet banking that was cooked up at Basel 2. I go into this at dontpaycreditcards.com...
The Fed allowed this massive bubble and then they profit off the resulting deflationary spiral. Government debt increases. Look at Japan. We are headed in the same direction debt wise.
This is accompanied by the raiding of the treasury by folks associated with the Fed, like Geithner and the Goldman Sachs moles in government.
This massive fraud would all be criminal, from the ponzi housing to the usury of credit cards to the raiding of the taxpayer to the falling dollar if the government weren't allowing it. That is why all these guys in government will lose their jobs.
In order for them not to lose their jobs they need to reign in the private Federal Reserve Bank, who owes allegience to the Bank of International Settlements and not to the US government or citizens.
That our sovereign nation did not have the power to put the bank corporate bondholders first in line for losses rather than the taxpayer is criminal.
We will be paying for years and this fraud will go unpunished. That is why these politicians are toast unless they do something. I am posting this on my instablog because I can't understand why educated individuals cannot see the massive theft by these powerful but common criminals taking place!