The Federal Reserve refuses to name names:
The Federal Reserve Board of Governors receives daily reports on loans to banks and securities firms, the institution said in response to a Freedom of Information Act lawsuit filed by Bloomberg News. The Fed refused yesterday to disclose the names of the borrowers and the loans, alleging that it would cast “a stigma” on recipients of more than $1.9 trillion of emergency credit from U.S. taxpayers and the assets the central bank is accepting as collateral.
So, not only are they stealing public money and transferring to giant, zombie banks, they’re claiming that a concern for the reputation of those zombie banks is more important than basic principles of public accounting. How, one wonders, can anyone claim with a straight face that there is any form of free market still extant in the USA anymore? Information is the lifesblood of capitalist free markets; it is the absence of price information that renders socialist central planning impossible.
Now, the Fed is actively hiding extremely important information from investors, who quite rightly have no interest in owning shares in insolvent institutions. This isn’t a solution, it’s merely an exercise in delaying the inevitable reckoning, hoping against hope that external events will somehow intervene before their desperate efforts prove futile.