Popular Posts

Tuesday, November 29, 2011

Is Bernanke Leaking Inside Information To Goldman Sachs?

Bloomberg reports:

The biggest bond dealers in the U.S. say the Federal Reserve is poised to start a new round of stimulus, injecting more money into the economy by purchasing mortgage securities instead of Treasuries.

Fed Chairman Ben S. Bernanke and his fellow policy makers, who bought $2.3 trillion of Treasury and mortgage-related bonds between 2008 and June, will start another program next quarter, 16 of the 21 primary dealers of U.S. government securities that trade with the central bank said in a Bloomberg News survey last week. The Fed may buy about $545 billion in home-loan debt, based on the median of the 10 firms that provided estimates.
Now how the hell could primary dealers, who include Goldman Sachs and other banksters, know this, unless Fed chairman Bernanke and other Fed officials are leaking this information to the favored elite?

I mean, as a Primary Dealer, do you just one day wake up and say to yourself, "Aha, the Fed is going to buy about $545 billion in home-loan debt, next quarter." And 16 primary dealers all had this same vision?

More

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.