Obama to appoint Bernanke to second term as fed chair

The AP reports:

Federal Reserve Chairman Ben Bernanke, widely credited with taking aggressive action to avert an economic catastrophe after the financial meltdown last fall, will be nominated by President Barack Obama for a second term, The Associated Press learned Monday night... In remarks prepared for the announcement, Obama praised Bernanke for leading the country through a financial crisis and, with his expertise on the Great Depression, helping to prevent a similar crisis...

In sticking with Bernanke, Obama is looking to reassure the financial sector as well as foreign central banks that his administration has no plans to change course on its largely well-received approach to rescuing the industry from its meltdown or its management of overall monetary policy.

Bernanke has won admiration from Democrats and Republicans on Capitol Hill even as some lawmakers have urged him to retain the Fed's independence and warned him not to become too cozy with the administration. Any move to replace Bernanke could have been perceived as injecting politics into the Fed, especially if Obama had turned to Lawrence Summers, his top economic adviser, as Bernanke's replacement.

So, the architect of the bailouts isn't going anywhere. On the one hand, those bailouts went to Wall Street fatcats and not Main Street pedestrians, rewarding the criminals and incentivizing dangerous risks. On the other hand, Wall Street intersects Main Street and the bailouts acted as a stop-light to prevent a traffic collision between a speeding Wall Street limo and a law-abiding Main Street school bus. Your thoughts?

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Bailout Scandal Expands w/ 20 TARP Fraud Probes

Well, now we know the real reasons as to why Bernanke, Summers and Emanuel were all over the Sunday talk shows telling us why they won't be needing any more TARP (Troubled Asset Relief Program) money. It's simple, really. After today's report hits the Hill from Bailout Inspector General Neil Barofsky's office, the administration doesn't stand a snowball's chance in hell of getting another cent.

And, with the announcement that Barofsky's initiating no less than 20 civil and criminial fraud investigations, as well, I'd even go as far as to say that some heads are gonna' roll.

In what may only be described as a scathing, brutal indictment of the Federal Reserve's and the Treasury Department's management of the Wall Street bailout to date,  the New York Times front page for Tuesday tells us how Bailout Inspector General Neil Barofsky's latest report, scheduled for release later today, no less than slams U.S. government bailout efforts, especially with regard to the "public-private investment partnerships," calling them:   "...inherently vulnerable to fraud and should not be started without stronger safeguards."

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Weekly Audit: Bank Execs Looting Customers, Shareholders and Taxpayers

by Zach Carter, TMC MediaWire Blogger  

Some of the largest U.S. banks may be on the ropes these days, but the disparity between the plight of financial executives and ordinary Americans has never been starker. Over the past two decades, the banking system has grown accustomed to scoring massive profits by preying on its own customers, making 2009's transition to pilfering taxpayer wallets an easy one. After burying the economy under a mountain of unaffordable debt, bank CEOs are now finding ways to subsidize their own paychecks with taxpayer bailout funds.  

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9 Bailout/Economy Lies and Deceptions

It's been pretty busy the past few days in the MSM and on the blogs with regard to commentary about Wall Street and our economic bailout.  Herein, I hope to provide a little clarity for those believing everything they're reading. There's a lot of misinformation being spewn...and from some of the highest levels, too.

But, as the saying goes, "The Truth Is Out There." In fact, it's right here!

So, without fanfare, here are "Nine Bailout/Economy Lies and Deceptions We're Hearing Right Now:"

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The Public's Buy-In to: "The Accounting Brothel"

"Highlights" of this diary:

--Some things you may not know (or that some may not want you to know) about all those AIG counterparty payments.

--An outrageous new proposal by the Financial Accounting Standards Board (FASB) which would impress even  Aesop, himself; nonetheless, a perversely distorted definition of "Net Income" may be in place for all in just days--just in time to spin the U.S. into oblivion.

--The concept of the Wall Street bailout being a public-private deal is little more than an outright lie to the U.S. public. What else can one say about a deal which is 80%-90% funded by the U.S. government and virtually encourages the purchase of all of these cents-on-the-dollar assets at 100 cents on the dollar?

--This morning, we're told to brace ourselves (again) for Geithner's full plan for all those toxic assets; and the TALF, TLGP and the FDIC will all handle piles and piles of toxic trash, expending hundreds of billions (if not trillions) in taxpayer funds, contrary to some bloviations in the blogosphere to the contrary (especially concerning TALF). Remember Paulson's plan for a "bad bank?" With Geithner it's three or four "bad banks," instead.

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Diaries

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