Central Planner Exits Stage Left

And cash from clunkers begins...

Ok, so I'm having me one of those blond days today

Does the cash for clunkers, stand for the excess crap the banks can't off load
or is the clunker part pertaining to the fraudulent MBS that never got registered?
There had to have been a crap load of those. Karl said that the banks only had 30 days after they were bought. I know there was a heck of alot of lawsuits citing fraud.
Doesn't the FED buying 40 billion a month of MBS kind of get the Investment banks out of a pretty tight spot?
Isn't the American taxpayer really picking up tab for the Mortgage Investment Banks gambling debts again?
It seems to me they are.....

Fed boss: More securities buys could help economy

http://finance.yahoo.com/news/Fed-boss-More-securities-buys-apf-596531551.html?x=0&sec=topStories&pos=main&asset=&ccode=

Gee I wonder if Ben is talking about picking up the tab for all those foreclosures that the AMI (American mortgage investors)wants bought back by the banks. Isn't it nice of Ben to do that on "our" dime? The timing seems perfect doesn't it?
Coincidence? I doubt it.


Federal Reserve Chairman Ben Bernanke said Monday that the economy could be helped by another round of asset purchases by the central bank.

Bernanke's comment reinforces analysts' beliefs that the Fed is likely to take action at its next meeting Nov. 2-3.

The Fed is considering launching a new program to buy government debt, a move aimed at driving down rates on mortgages, corporate loans and other debt. It's wrestling with how much it should buy.

"I do think the additional purchases -- although we don't have the precise numbers for how big the effects are -- I do think they have the ability to ease financial conditions," Bernanke said during a town-hall style meeting here with college students.

During the recession, the Fed ended up buying a total of roughly $1.7 trillion of mortgage securities and debt, as well as government bonds. Bernanke called that "an effective program."

Bernanke Warns Against Move to Audit Fed

http://online.wsj.com/article/SB10001424052748704370704575228164133105390.html?mod=WSJ_hpp_LEFTWhatsNewsCollection



Federal Reserve Chairman Ben Bernanke sought Thursday to head off legislation that would subject the central bank's monetary policy decisions to congressional audits, warning it could stoke inflation and threaten economic stability.

With U.S. senators moving toward a possible vote later in the day on an amendment to the financial regulatory bill that would significantly increase congressional oversight of the Fed, Mr. Bernanke warned of the consequences in a letter to Senate Banking Committee Chairman Christopher Dodd (D., Conn.).

"Such amendments, if enacted, would seriously threaten monetary policy independence, increase inflation fears and market interest rates, and damage economic stability and job creation," Mr. Bernanke wrote.

In the past few days, Mr. Bernanke has reached out to about a half-dozen lawmakers to help make the Fed's case against the bill.


..If the amendment passes, it might be hard to strip from the broader legislation. The House's version of the bill, which passed late last year, contains a similar provision, which Mr. Bernanke also opposes. Passage would set up a dilemma for the White House, which would have to decide whether to veto a top domestic priority to duck the provision.