Alan Grayson: "Have The Federal Reserve Or Prime Brokers Ever Tried To Manipulate The Stock Market?"

[cobben]

Surprised no-one seems to have picked up on this.


"Have The Federal Reserve Or Prime Brokers Ever Tried To Manipulate The Stock Market?"
http://www.zerohedge.com/article/has...-prime-brokers

Alan Grayson: I would like to know whether it is within the Federal Reserve's legal authority to try to manipulate the stock market or the futures market.
Federal Reserve GC Scott Alvarez: I don't believe the Federal Reserve tries to manipulate the stock market...(Yoda: Do or do not, there is no try.)
Alan Grayson: Does the Federal Reserve actually possess all the gold that's listed on their balance sheet.
Scott Alvarez, doing a classic poker body language tell, and taking his time: Yes...
Alan Grayson: Who actually executes the trades for the Federal Reserve in the markets?
Scott Alvarez: The Federal Reserve Bank of New York, which executes trades through Primary Dealers.
Alan Grayson: Can you name one Primary Dealer?
Scott Alvarez: JP Morgan Chase
Alan Grayson: Do you mind if we have a GAO audit to see if there has been front-running or insider trading by them? Do you mind? Is that ok with you?
Scott Alvarez: I am not sure if I have that authority...

[cobben]

Alan Grayson a Werewolf In Dollar's Clothing

A Werewolf In Dollar's Clothing
http://www.zerohedge.com/article/wer...llars-clothing

"The only thing better than Alan Grayson? Matt Taibbi on Alan Grayson.
Turns out the vampire squid progenitor had gotten in some hot water with the Congressman way back when:

. . . "
__________________________________________________ ___________

Congressman who went werewolf on me now spooks Fed officials
http://trueslant.com/matttaibbi/2009...-stock-market/

[ThePythonicCow]

Re: Alan Grayson: "Have The Federal Reserve Or Prime Brokers Ever Tried To Manipulate The Stock Mark

Alan Grayson: I would like to know whether it is within the Federal Reserve's legal authority to try to manipulate the stock market or the futures market.
Federal Reserve GC Scott Alvarez: I don't believe the Federal Reserve tries to manipulate the stock market...(Yoda: Do or do not, there is no try.)

I found this exchange between Grayson and Alvarez to be rather insignificant. Clearly Alvarez is a top drawer lawyer. He willingly derailed the questioning by (1) taking the implicit position that the Fed does not directly manipulate the stock market, (2) however its proper and legal actions such as setting some interest rates might affect the stock market. But Alvarez avoided directly saying this ab initio, rather derailed Grayson's questions into quibbling over whether or not the Fed's interest rate setting did or did not sometimes affect the stock market. Other than serving as a bit of amusement and a resume enhancer for Alvarez, I see no other benefits from this discussion.

[cobben]

Re: Alan Grayson: "Have The Federal Reserve Or Prime Brokers Ever Tried To Manipulate The Stock Mark

"I found this exchange between Grayson and Alvarez to be rather insignificant. "

I think the significance is that it occured at all.

Grayson received good reviews here in previous posts about him (I had not noticed them, have not had time to read through them thoroughly yet), here he is acting more like a "loose cannon".

Too me this indicates either "someone" has pointed him at the Fed and said "attack!", or if he is truly acting entirely on his own that things are getting out of control.

[ThePythonicCow]

Re: Alan Grayson: "Have The Federal Reserve Or Prime Brokers Ever Tried To Manipulate The Stock Mark

I think the significance is that it occured at all.

There are a variety of things happening like this. Barney Frank and other Congressmen have been taking a tougher line against the Federal Reserve. Ron Paul's long standing bill to audit the Fed is gaining major traction, with the House holding hearings on it for the first time since the bills introduction two or three decades ago. The IMF audit of the American economy which Bush held off for many years is on track (see another post at iTulip today: IMF to audit the FED?). The IMF Managing Director Dominique Strauss-Kahn is getting more press coverage here in America, according to iTulip IMF to audit the FED?. The leading Chinese financial minister Zhou Xiaochuan proposed a world-wide meta-currency based on IMF SDR's in March in a widely influential paper. See the thread China central bank: "Reform the International Monetary System".

The "powers that be" seem to be preparing the American public for a replacement of the dollar by SDR's as the world's meta-currency. This will require taking the Fed, defender of the almighty dollar, down a peg or two. This will also meet with a fair amount of resistance, both from American banks (and the bankers bank, the Fed) who have profited mightly from the Dollar's reserve status, and from the American people who will view this as replacing the dollar with a world government currency (even though, by my best guess, the domestic U.S. role of the dollar is not replaced, only its world meta-currency role, which I view as a necessary change.) We may have to journey through the valley of the shadow of death before this plays out.

Too me this indicates either "someone" has pointed him at the Fed and said "attack!", or if he is truly acting entirely on his own that things are getting out of control.

Grayson has been on the Fed's case since he entered Congress in January of this year. From a Salon.com article by Glen Greenwald

Monday Jan. 26, 2009 12:10 EST
Salon Radio: Rep. Alan Grayson on bailout transparency

At a recent hearing of the House Financial Services Committee, freshman Rep. Alan Grayson tenaciously questioned various officials of the Federal Reserve, including the Vice Chairman Donald Kohn, regarding the Fed's refusal to disclose (both to the public and to Congress) even the most basic information about what has been done with the $1.2 trillion the Fed has spent since September 1 -- including even revealing which institutions have received those funds.

The exhange between Rep. Grayson and Vice Chairman Kohn -- the video of which is below -- struck me as significant for several reasons, beginning with the fact that this was Rep. Grayson's very first hearing ever as a Congressman, and he was more vigilant and aggressive in demanding accountability from a high government official than many of his colleagues in Congress have ever been even after serving many terms. Additionally, his adept questioning (Grayson was a successful trial lawyer before being elected to Congress) elicted how high officials truly view Congress. Grayson's questioning of Kohn immediately sparked a controversy that will almost certainly lead to greater pressure on the Fed to account for how this money was spent.

[skyson]

Re: Alan Grayson: "Have The Federal Reserve Or Prime Brokers Ever Tried To Manipulate The Stock Mark

"I found this exchange between Grayson and Alvarez to be rather insignificant. "

I think the significance is that it occured at all.

Grayson received good reviews here in previous posts about him (I had not noticed them, have not had time to read through them thoroughly yet), here he is acting more like a "loose cannon".

Too me this indicates either "someone" has pointed him at the Fed and said "attack!", or if he is truly acting entirely on his own that things are getting out of control.

Grayson was acting as the lawyer pursuing the case of missing of $20 billion of Iraqi fund by the US occupying administration. He seems a good guy acting on his conscience. See link:
http://www.itulip.com/forums/showthread.php?t=12006

[FRED]

Re: Alan Grayson: "Have The Federal Reserve Or Prime Brokers Ever Tried To Manipulate The Stock Mark

"All the world's a stage..."

Grayson's role in the drama is as anti-Fed radical. The purpose of the role of the radical in any debate that tests entrenched interests is twofold. One, to discredit the mission of those opposed to arrangements that benefit entrenched interests. Two, to discourage moderate potential allies of the opposition from joining the battle. Without a growing base of support, the opposition will die out. For FIRE Economy interests alied with the Fed, Grayson is a godsend.

[WildspitzE]

Re: Alan Grayson: "Have The Federal Reserve Or Prime Brokers Ever Tried To Manipulate The Stock Mark

"All the world's a stage..."

Grayson's role in the drama is as anti-Fed radical. The purpose of the role of the radical in any debate that tests entrenched interests is twofold. One, to discredit the mission of those opposed to arrangements that benefit entrenched interests. Two, to discourage moderate potential allies of the opposition from joining the battle. Without a growing base of support, the opposition will die out. For FIRE Economy interests alied with the Fed, Grayson is a godsend.

...couldn't have phrased my skepticism better.

A congressional hearing is the biggest stage in this freakshow. The real work is all done behind the scenes anyway.

[vinoveri]

Re: Alan Grayson: "Have The Federal Reserve Or Prime Brokers Ever Tried To Manipulate The Stock Mark

"All the world's a stage..."

Grayson's role in the drama is as anti-Fed radical. The purpose of the role of the radical in any debate that tests entrenched interests is twofold. One, to discredit the mission of those opposed to arrangements that benefit entrenched interests. Two, to discourage moderate potential allies of the opposition from joining the battle. Without a growing base of support, the opposition will die out. For FIRE Economy interests alied with the Fed, Grayson is a godsend.

So who is the puppet master in this case?

I'd rather have a radical than no one doing anything. Are you suggesting that Grayson's role is to harm support for the Paul resolution to audit the Fed? Who's pulling his strings?

[cobben]

Re: Alan Grayson: "Have The Federal Reserve Or Prime Brokers Ever Tried To Manipulate The Stock Mark

""Grayson's role in the drama is as anti-Fed radical. "

Well, if he is he puts on a really & good believeable show.


Exclusive Interview: Congressman Alan Grayson Talks Fed Transparency and Missing Money
Written by Damien Hoffman Posted on 14 September 2009
http://wallstcheatsheet.com/knowledg...money/?p=1878/

" . . .

Congressman Grayson: They are performing a truly remarkable, surreptitious transfer of wealth from public to private hands. They are taking their ability to print money and shore up failed banks. They are simply stuffing money into the pockets of private interests.

In the case of the half a trillion dollars, they stuffed the money into foreign private pockets. In the case of another $230 billion, it has been tracked as a secret bailout to Citicorp in the US. The fact is the Federal Reserve continuously puts all of us on the hook for decisions they make to play favorites with private interests to the tune of trillions of dollars.

Damien: Congressman, what do you say to those who call your allegations a conspiracy theory?

Congressman Grayson: Something I found very intriguing was the Semi-Annual Report from the Federal Reserve to the Congress. That’s a mother-load of secrets if you read it very carefully and ask the right questions.

Since it looks like the Federal Reserve may soon be subject to the Freedom of Information Act, that opens many opportunities for the public to see the facts.
. . . "

[ThePythonicCow]

Re: Alan Grayson: "Have The Federal Reserve Or Prime Brokers Ever Tried To Manipulate The Stock Mark

"All the world's a stage..."

Grayson's role in the drama is as anti-Fed radical. The purpose of the role of the radical in any debate that tests entrenched interests is twofold. One, to discredit the mission of those opposed to arrangements that benefit entrenched interests. Two, to discourage moderate potential allies of the opposition from joining the battle. Without a growing base of support, the opposition will die out. For FIRE Economy interests alied with the Fed, Grayson is a godsend.

Usually being ridiculed is precursor to being swept aside, but occassionally it is precursor to more. Mahatma Gandhi wrote: 'First they ignore you, then they ridicule you, then they fight you, and then you win.'

[cjppjc]

Re: Alan Grayson: "Have The Federal Reserve Or Prime Brokers Ever Tried To Manipulate The Stock Mark

"All the world's a stage..."

Grayson's role in the drama is as anti-Fed radical. The purpose of the role of the radical in any debate that tests entrenched interests is twofold. One, to discredit the mission of those opposed to arrangements that benefit entrenched interests. Two, to discourage moderate potential allies of the opposition from joining the battle. Without a growing base of support, the opposition will die out. For FIRE Economy interests alied with the Fed, Grayson is a godsend.

A little cynical Fred. Most who push at an established entity are seen as radical. Ron Paul is seen as radical. If people would rather sleep, oh well. As was said earlier all the crack pots and doomers were right.

[doom&gloom]

Re: Alan Grayson: "Have The Federal Reserve Or Prime Brokers Ever Tried To Manipulate The Stock Mark

I love Grayson approach because it is just like my approach to bullshit --
just keep beating it out of the system. He is by far my fav Dem in all DC.

[metalman]

Re: Alan Grayson: "Have The Federal Reserve Or Prime Brokers Ever Tried To Manipulate The Stock Mark

I love Grayson approach because it is just like my approach to bullshit --
just keep beating it out of the system. He is by far my fav Dem in all DC.

i love his style... but at times it seems he's very aware of his audience... plays to it...

[cobben]

Re: Alan Grayson: "Have The Federal Reserve Or Prime Brokers Ever Tried To Manipulate The Stock Mark

"he's very aware of his audience... plays to it..."

It has occured to me that some theatrical lawyers are just failed would-be actors, but what do I know . . . perhaps they are just would-be torturers ala Spanish Inquisition.