JPM using TARP funds to drive up the price of oil… how do they get away with this kind of abuse?
Oh Really Mr. Hoenig? (and JPM)
WASHINGTON (MarketWatch) — Rising yields on long-term Treasury debt is a signal that the Federal Reserve should being raising interest rates, said Thomas Hoenig, the president of the Kansas City Federal Reserve district bank on Wednesday. The higher yields are a signal that the market is concerned with the inflationary pressure from the high federal budget deficit and "very" accommodative monetary policy, Hoenig said in a speech in Wyoming. "I suggest strongly that we need to be alert to the markets’ message and begin in earnest to bring monetary policy into better balance before inflation forces get out of hand," Hoenig said.
I’ll believe it when I see the excess liquidity withdrawn.
Indeed, after the command performance by Bernanke this morning, in which he denied that which was not only blatantly obvious (monetizing debt) but which he had previously admitted to in the FOMC statement, the easiest thing to do whenever you hear anyone from The Fed speak is simply to repeat to their face one word: LIAR
Speaking of excess liquidity…..
June 3 (Bloomberg) — JPMorgan Chase & Co., the second- largest U.S. bank by deposits, hired a newly built supertanker to store heating oil off Malta, shipbrokers reported, in the company’s first such booking in at least five years.
The bank hired the Front Queen for nine months, according to daily reports from Oslo-based SeaLeague A/S and Athens-based Optima Shipbrokers Ltd. David Wells, a spokesman for JPMorgan in London, declined to comment.
So let me see if I get this right.
The Taxpayer hands JP Morgan billions of dollars to bail them out and keep them from potentially being declared insolvent.
In return for this JP Morgan spends that money speculating on the price of oil, and in fact does one better – they take physical delivery and lease a ship to store it in, thereby withholding the oil from the market and propping up the price, hoping to be able to sell that oil at a higher price later.
In the meantime, however, they are partially responsible for the rise in gas prices, meaning that not only did they collect taxpayer money once, but they are effectively partly responsible for you the consumer paying a second tax, this time through higher fuel prices at the gas pump.
Then, when the time is right (for them) they will sell the oil and profit a second time.
You, the taxpayer, will pay for all three of these actions.
And we, the idiots in America, along with a bribed and purchased Congress, will allow them to get away with it.
Disclosure: No positions in JPM or Oil at the present time.
