Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (9154)	3/23/2008 3:21:51 AM
From: John Pitera	Respond to of 33421

The connection is that the link you provided for Federal Reserve audits indicates that they don't engage in a full audit. The link you submitted indicates that the GAO audit is a limited audit that does not include an audit of the Federal Reserves Open Market Operations activity. Since that is the single biggest part of their activities and should be a very large part of their income statement and balance sheet. any type of accounting of and auditing of is very incomplete. a rough analogy, it's like looking at the LA Dodgers Hot dog and concession sales per game and not examining the revenue from the ticket sales and broadcasting revenue. -------------------- and dwell on these few sentences from the evidence that you presented.... Exemptions to the Scope of GAO Audits The Government Accounting Office does not have complete access to all aspects of the Federal Reserve System. The law excludes the following areas from GAO inspections (31 USCA §714): (1) transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization; (2) deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, open market operations; *(3) transactions made under the direction of the Federal Open Market Committee; or* (4) a part of a discussion or communication among or between members of the Board of Governors and officers and employees ofthe Federal Reserve System related to items. John

To: Moominoid who wrote (9154)	3/23/2008 3:29:05 AM
From: John Pitera	Read Replies (1) \| Respond to of 33421

The connection is that the link you provided for Federal Reserve audits indicates that they don't engage in a full audit. and to distill it into 1 sentence: (3) transactions made under the direction of the Federal Open Market Committee; or the FED has just expanded this facility to absorb and provide liquidity for all these CDO's and other "assets" from non banks such as LEH and GS. which goes to show how profound and powerful FOMC and related FED Security Purchasing ability is. It is by law almost unlimited during times of extreme market distress. So when you say that we have an auditing of the FED and yet it is not by law authorized to examine and audit the portion of the banking enterprise where 80% of the activity is occurring, what are you really trying to sell us on? And I support the FED in what they are doing. A huge credit collapse is not going to make for a more cohesive society. just don't give me grief about why I've been talking about inflation on here for 8 years.( and I know you. MM have not) John