HR 1207 Audit the Federal Reserve, now has 124 co-sponsors in the House of Representatives.

http://www.ronpaul.com/on-the-issues/audit-the-federal-reserve-hr-1207/

Wow….I will say that I have been increasingly bewildered by the equity market price action. In fact, I said to somebody just the other day that I have begun to discount the price action in the equity market as not being in sync with the economy.

In my opinion, if the equity markets are truly reflective of the health of the economy, then the bond market should be a LOT lower than it is currently even with the Fed’s purchasing program.

One of these two markets is out of sync and potentially both.

If the govt is using GS or anybody else to prop the market, the losses involved in foreclosures and defaults are very real and can not be avoided. That is the real economy and that has my focus.

If the equity markets rally and I miss it, c’est la vie. I’m not playing. I’m writing and looking to help people “navigate the economic landscape.”

One final point, as I mentioned in my post Water Finds Its Own Level, markets which are manipulated work their way lower to find their natural level over time.

“Acorn intimidated banks into giving mortgages to people who had no business having one and had no intention of paying for them.”

No. What happened was that unknown people in the financial industries made astonishingly fast and vast profits by deliberately making unsafe loans and transfering the attendant risk onto other unsuspecting parties. They did this from the level of individual loan origination all the way up the chain, cunningly bundling bad loans with the good in a manner calculated to conceal the actual risk level. Investment instruments were sold and resold with false risk ratings; derivative instruments were created to give an illusion of safety and deeper concealment of bad bets. These were themselves sold and resold as if they had actual value.

Somewhere along the line we seem to have forgotten that the national and global economy were raided by pirates, who for the most part have gotten away with their loot unnoticed. It serves their ends if we blame politicians, ACORN, people who have lost their homes, etc.

This is not a classic suckers rally, this time it is different. The Fed is printing and the treasury is handing over trillions to GS and the like with the back room understanding that after all the bonus payouts, they must use some of the taxpayer money to prop up the stock market. The side benefit is that the SEC will continue to look the other way as the TARP recipients make insider trading profits when they put the money to work.

Do you still think that such possibilities of market manipulation are remote? I don’t have a financial dog in this fight–I’m just very curious.

But the arrogance of the banks makes me want to kick someone in the pants.

Obama’s economic team needs to be put in quarantine — and replaced by people willing to put the public interest ahead of the interests of Wall Street.

Let’s see–who wrote that? Why that would be Arianna Huffington in her current post. I feel this compulsion to add something snarky, but I think I’ll just leave it at that.

I am becoming somewhat concerned that Bernanke is wondering if they have put too many chips on the table.

A bit of snark so obvious it pretty much writes itself: Why should Bernanke worry? He’s got all the machinery for manufacturing more “chips” in the back rooms of the casino . . .