Thursday, May 7, 2009

The Insiders Have a Good Belly Laugh

The transcripts of the 2003 Federal Reserve FOMC minutes have been released. The last meeting of the year was the first for Timothy Geithner as the New York Fed's president. The head of the New York Fed traditionally serves as vice chairman of the FOMC. Here's how that went down:

CHAIRMAN GREENSPAN. The next item is the election of a Vice Chair. Governor Ferguson.

MR. FERGUSON. My nomination for a new Vice Chairman of this Committee is Timothy Geithner, the President of the Federal Reserve Bank of New York.

CHAIRMAN GREENSPAN. Is there a second?

SEVERAL. Second.

CHAIRMAN GREENSPAN. Is there opposition? [Laughter] Congratulations! As you've observed, the democratic process has worked without a flaw


  1. Not that I don't hate the fed or anything, but, what's so sickening? It was obviously just a formality at that point. It's not like they were voting on whether or not to kill a baby.

  2. @ annonymous

    No they weren't voting on killing a baby, just the United Staees of America. And the laughter indictes its all a charade.

    They were laughing at us.

  3. Yes, the apparent mockery is repulsive.

  4. According to Davis and Reese-Mogg (The Great Reckoning), they have been laughing at us for three hundred years. A paraphrase from Reckoning:

    There is a nine-year gap between the commodity peak and the crash over the last five generations. Add forty-six years to that (the average number of years between peak and crash) and you have a boom-bust cycle twice every hundred years or once a generation, meaning every generation of working and middle-class citizens, for the last three hundred years has been good and plucked:
    · First Time: Commodity prices peaked in London in 1711 (Long before America came into the economic picture). The South Sea Bubble burst exactly nine years later in 1720.
    Depression followed.
    · Second time: Producer prices peaked in London in 1763. The London stock market crashed again in 1772 (nine years later).
    Depression followed.
    · Third time: Commodity prices peaked in London in 1816.The London stock market crashed in 1825 (nine years later).
    Depression followed.
    · Fourth time: Wholesale prices peaked in New York in 1864. A worldwide assets crash began in May 1873 (nine years later).
    Depression followed.
    · Fifth time: Then followed our beloved Great Depression in the 30s, about which much has been said, from which, little learned.
    * Sixth time: Commodity prices peaked some fifty years later in Tokyo, in 1980. The Tokyo stock market crashed in 1989 (again, nine years later). The depression following that crash is now upon us.
    Look around you and do the math: The last depression is called The Great Depression.
    I call this one ‘Grand Theft Planet’ ©.
    Given that (our only scapegoat for this planetary theft) Bernie Madoff, having uttered a guilty plea, will not be tried in a court of law, the question, “where is the money?” will not arise and there is every possibility that the American government will reimburse his victims.
    If, however, Madoff were head of just another finance company that went belly up after years of the SEC’s awareness, and was tried, it would be tough on his investors, but we might have found out where the money went and why his guilty plea was accepted - "Grand Theft, Planet" by Tom Dennen

    I have no doubts about why they laugh