Ho Ho Ho
My apologies for the break in my posts. Perhaps I have been overwhelmed by the prospect of the centralization of our once free and prospering economy. Enough of that, let’s discuss more exciting aspirations, inspirations and good old fashion hallucinations. Let’s start with Maiden Lane III. Some of you may confuse this name with a street sign, business address or clever name for the latest corporate hydroplane. Well, my friends, it is none of the above. It has much more intrigue and dare I say deception? Oops, almost forgot that I live in the land of the free. I digress.
Hang on to your festive hats, my Looney friends. Santa Bernanke has been a busy little saint. Christmas came early in November for a number of US and European banks. They found $20 billion stuffed carefully in their stockings. They must have been good little banks. Strange and true, it wasn’t identified with any clarity on Santa’s famous list. No! It showed up on the Fed’s balance sheet as a single entry called “Maiden Lane III.” The entry was accompanied by a few cryptic regulatory documents. How magical! Santa is real and he doesn’t want us to find where he lives!
There seems to be a little problem with Santa’s generosity, however. The feds have outstanding loans of $2.2 trillion, up form $900 billion in September ’08. In addition, the “you have been nice” list has expanded from short-term loans to banks, to now include buying securities, some that include those “been naughty” mortgages. Well, the risk is great and if the “secret gifts” don’t pay us (you know, the tax payer, silly) back, we get stuck with the loss. Hmmm, I wonder what is for next Christmas?
If we don’t get paid back, I guess we will need some more green ink and increased power for the ol’ printing press. After all, it’s just money. What really matters is the spirit of giving. At any rate, I would sure like to know more about this November Christmas list. Call me demanding, but it is our money after all. And where is the press on this? I am happy Brittany is having a come back, but is this not news worthy? Maybe it isn’t. Maybe it is just ho ho hum.
