Federal Reserve ADMITS To Robbing The Citizens

Extracted from this morning's Ticker and reposted....

This morning Harvey Rosenblum of the Dallas Fed (Executive VP) said something on CNBC that truly astounded me - The Federal Reserve is in business to create Moral Hazard. (watch his comments)

Now let's think about this for a minute, and go back to a relatively simple example - a lender makes a mortgage loan to a person who is unqualified, on an objective basis, to pay that mortgage down to completion and take clean title to the house.

Ok.

Now realize that when a bad loan is made the loss happens at that point in time. Just like a stock you buy that immediately implodes the indisputable fact is that loss has occurred, and we are reduced to arguing over who gets to eat it and when we admit to it.

So if The Fed is in fact "in the business of moral hazard", then we have just had The Dallas Fed admit a truth that is in fact quite uncomfortable for anyone who has a brain and is willing to use it - The Federal Reserve, as a consequence of how its mission is defined and how it chooses to discharge that mission, shifts costs and losses away from those people responsible for them and onto those people who have been and are prudent - that is, the American Public at large.

In short, what Rosenblum admitted - on national television - is that The Fed as currently constituted and operated exists to rob the public to cover the losses of wealthy investment and commercial bankers, thereby allowing them to take risks that they would never take in a market where idiocy (or even outright fraud) was punished by bankruptcy.

You were just told that this private group of banks, operating under Federal charter by our government, has as its mission in life robbing the public whenever and wherever necessary so that its clients are not forced to act in a prudent fashion. You also now know that The Fed has extended that list of "clients" to cover investment banks along with Fannie and Freddie.

I do not want to hear any more complaints about how our government or The Fed (and its monetary policy) are "screwing" you until and unless you, as citizens, act to stop this nonsense. I am not asking you to accept on faith that The Fed's actions are not to your benefit any longer, as I have since The Market Ticker began publication.

You have been told in plain English what The Fed's primary mission is, on national television, by a Vice-President of The Fed itself.

Wake up America.

Each day that you have a cup of coffee instead of deciding that you will not pay one more credit card or mortgage bill, or that you will trudge off to work and put in your eight hours instead of throwing down your tools and keyboards and march on Washington, is a day that you give your willing consent to this outright, admitted robbery.

Labor Day approaches.

Who are you working for, and why are you consenting, each and every day, to this blatant and admitted theft?