The Fed: Another CYA (cover your *ss) Move
The Federal Reserve Bank released a set of documents, which in the least, is infuriating.  The Fed made the enlightening announcement that low interest rates "could lead to excessive risk-taking in financial markets." What planet is the Fed living on?  Hasn't the Fed seen the ridiculous increase in "carry-trade"?  It has been happening right under the Fed's nose for the last year due to record-low U.S. interest rates.  By the way,  a simple definition of "carry-trade" is borrowing money at a cheaper rate than you can earn on an investment elsewhere, then sitting back and enjoying the profits. These idiotic statements that the Fed makes lead

"Audit the Fed" moves closer to fruition
"If you care about transparency of the Fed, you would allow a look at monetary policy," Paul said. "We're dealing with trillions of dollars that doesn't get audited. There is no reason why the world can't know, eventually, what the Fed is doing."  Ron Paul The "Audit the Fed" legislation moved one step closer to fruition as The House Financial Services Committee approved the measure to be tacked on to a bigger bill.  It's funny how politics works.  HR 1207 (the original "Audit the Fed" legislation) was gutted by Congressman Mel Watt from North Carolina (who received 35% of his monetary contributions from the finance world).  A new measure was introduced, whi

Small Business lending is Down....Duh!
If the U.S. government supposedly knows what is best for its citizens, then why does it take so long for it to understand what is going on down on Main Street?  U.S. bank lending volume to small businesses has dropped precipitously.  Ask any small business owner. What I don't understand is the rationale behind some of the U.S. government's financial decisions.   TARP money is taxpayer money (albeit, borrowed money).  TARP money was lent to some banks, lost by some zombie U.S. auto manufacturers, and got burned up (in AIG's case).  TARP money succeeded in boosting the weak capital positions of U.S. banks. Now, the U.S. taxpayers that ow

My Musings about the Art of Bowing
It's not related to finance, but it is a topic on my mind.  Our Commander-in-Chief was photographed bowing to King Abdullah of Saudi Arabia.  Obama denied bowing.  Our Commander-in-Chief was photographed bowing to Emperor Akihito of Japan.  Obama didn't deny bowing this time.  This is not about who our Commander-in-Chief is at the present time.  I could care less; this is a matter of principle. What is it with bowing?  In my opinion, our Commander-in-Chief should never bow to any foreign leader, regardless of customs.  The customs are theirs; not ours, not American.  The United States of America earned the right to stand tall in the

The Federal Reserve Bank's Stupidity: It's all coming out in the wash...
I am fascinated by today's events regarding the proposed legislation sitting in the House of Representatives (HR 1207 Audit the Federal Reserve Bank).  Congressmen (both Democrats and Republicans), who were previously against this legislation, are jumping on the bandwagon left and right!  I wondered why, all of a sudden, the about-face. Well, it didn't take long to get the answer.  Neil M. Barofsky, the special inspector general for the Troubled Asset Relief Program, issued a scathing report yesterday regarding The Federal Reserve Bank's ill-advised and questionable tactics with the TARP money.  Mr. Barofksy points out that most of the TARP money was mismana