The Fed is pulling out all stops to defend its secrets, including publishing self-serving mathematical gibberish. Please consider the St. Louis Fed article on the Social Cost of Transparency.
Unless you are an academic wonk, you will be stymied by pages that look like this …
There are 24 pages of such nonsense with titles like
- 2.2 Private Information and Full Commitment
- 2.3 Private Information and Limited Commitment
- 3.2.1 Decision Making in the Day
- 3.2.2 Decision Making at Night
- 3.2.4 A No-News Economy
Just for good measure here is the page describing 3.2.4 A No-News Economy
The article culminates with …
For an asset economy then, the prescription of “full transparency” is not generally warranted.
Approaching the problem under the premise that fuller transparency is always desirable may not be the right place to start.
Hiding Behind Empirical Formulas
The problem is Bernanke places his complete faith in such gibberish, so much so that he has lost all sense of real world action by real people. The result is that in spite of his PhD, he could not see a housing bubble that was obvious to anyone using a single ounce of common sense.
Moreover, had Bernanke simply opened his eyes instead of relying on a poor interpretation of an already fatally flawed Taylor Rule, the credit/housing bubble would not have gotten as big as it did, and we might not be discussing the above ridiculous mathematical formulas that supposedly show us the Fed needs to be secretive.
For more on Bernanke's love affair with the Taylor Rule (even though Taylor Disputes Bernanke on its usage), please see Taylor, NY Times, Dean Baker Call Out Bernanke.
Appeals Court To Hear Bloomberg's Freedom of Information Suit
Bloomberg has been in a battle with the Fed for two years over the Fed's “unprecedented and highly controversial use” of public money. In August it “won” the lawsuit but the Fed has appealed.
Please consider Federal Reserve Seeks to Protect U.S. Bailout Secrets.
The U.S. Court of Appeals in Manhattan will decide whether the Fed must release records of the unprecedented $2 trillion U.S. loan program launched after the 2008 collapse of Lehman Brothers Holdings Inc. In August, a federal judge ordered that the information be released, responding to a request by Bloomberg LP, the parent of Bloomberg News.
Bloomberg argues that the public has the right to know basic information about the “unprecedented and highly controversial use” of public money. Banks and the Fed warn that bailed-out lenders may be hurt if the documents are made public, causing a run or a sell-off by investors. Disclosure may hamstring the Fed’s ability to deal with another crisis, they also argued. The lower court agreed with Bloomberg.
The ruling by the three-judge appeals panel may not come for months and is unlikely to be the final word. The loser may seek a rehearing or appeal to the full appeals court and eventually petition the U.S. Supreme Court, said Anne Weismann, chief lawyer for Citizens for Responsibility and Ethics, a Washington advocacy group that supports Bloomberg’s lawsuit.
In her Aug. 24 ruling, U.S. District Judge Loretta Preska in New York said loan records are covered by FOIA and rejected the Fed’s claim that their disclosure might harm banks and shareholders. An exception to the statute that protects trade secrets and privileged or confidential financial data didn’t apply because there’s no proof banks would suffer, she said.
The central bank “speculates on how a borrower might enter a downward spiral of financial instability if its participation in the Federal Reserve lending programs were to be disclosed,” Preska, the chief judge of the Manhattan federal court, said in her 47-page ruling. “Conjecture, without evidence of imminent harm, simply fails to meet the board’s burden” of proof.
By the time the documents are released, the information may be useless, or not. Regardless, the battle is worth fighting just over the principles of the matter.
Fed Faces Subpoena Over AIG bailout
On Tuesday I commented on House Plans To Subpoena Geithner Over AIG Decisions
AP
Rep. Edolphus Towns, D-N.Y., said Tuesday he will subpoena the New York Fed for documents related to the bailout of failed insurer American International Group Inc.
Towns chairs the House Oversight and Government Reform Committee. The committee is investigating deals that diverted billions of AIG bailout dollars to banks including Goldman Sachs Group Inc.
The committee has been investigating e-mails from New York Fed lawyers telling AIG not to disclose details about the deal. The e-mails were released last week by California Rep. Darrell Issa., the committee's top Republican.
Issa asked Towns to subpoena the New York Fed after the Fed blocked a separate request for documents.
Audit The Fed
Of course we cannot forget Ron Paul's Audit The Fed measure that has passed the house. These measures show just how angry everyone is over the Fed.
The Fed has increased that anger and resentment by pointing the finger at everyone else. For details, please see Ben Bernanke Looks In Mirror, Sees Barney Frank.
Three Front Attack
- Appeals Court To Hear Bloomberg's Freedom of Information Suit
- Fed Faces Subpoena Over AIG bailout
- Audit The Fed
The more the Fed squirms in secrecy and denial, the more public resentment builds. The more public resentment builds, the more likely the Senate will go along with “audit the Fed”.
What's On The Fed's Balance Sheet?
The Fed's balance sheet (better thought of as a diaper or a garbage dump), is not only smelly, it is bulging bigger by the day.
We have a right to know what the Fed is doing, what the assets it is holding are worth, and what arrangements it might have illegally made with AIG or others.
Yesterday the Washington Post reported Federal Reserve earned $45 billion in 2009.
I have a few questions.
Really?!
- Does that count the $185 billion the NY Fed crammed down taxpayers throats over AIG?
- Does that count the real cost of any of its other inane off-balance-sheet recommendations approved by Congress at taxpayer expense?
- Does that include a marked-to-market accounting of Mortgage Backed Securities on its balance sheet?
- Does that include a marked-to-market accounting of anything other than specific items the Fed wanted marked-to-market?
The Fed conveniently ignores all of its recommendations that cost taxpayers hundreds of billions of dollars, some done illegally, and then has the self-serving, selective-myopia gall to talk about “gains”.
Bloomberg argues that the public has the right to know basic information about the “unprecedented and highly controversial use” of public money. Anyone thinking clearly has to agree.
Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List
guest post by Kelly Diels
In November, I rebranded and relaunched my blog. I screwed up, I suffered, I sniffled, I refuted the advances of a pervy tech wizard. And I thought: I’d better track my results to see if this was worth it. This better have been worth it.
It was.
On November 10, my Alexa rank was 1,082,076.
Two months and one day later, it is 173,556.
So, in just two short months (and one day), I raised my Alexa rank by almost one million places.
In three months (in the screen shot above, look at the bottom right figure of 1,766,896), my Alexa rank increased by almost two million places.
How’d I do it? I’m so glad you asked.
Once you get past the first set of ingredients – have a seriously small and unpopular blog – the recipe is simple. It simply requires a ridiculous amount of work and a bit of creativity.
Still, I’ve itemized and analyzed what I did differently in the last two months just so I could whisper sexy blog secrets in your ear.
Here is a list of my torrid confessions.
1. Write unique stuff
Yes, this is just another way of saying “write great content! great content! great content!”. There’s a reason everyone says it, repeatedly: because it works.
I admit it. When I started blogging, I was a wannabe. I wanted to be Steve Pavlina, Darren Rowse or Yaro Starak.
Now, I just wannabe myself. I’m lit-on-fire for the written word, I have big, ballsy opinions, I’m in bed with surprise, and I love to love. That all shines through in my transparent and sometimes pulpy posts. I know the blogging and business-writing rules and alternate between obeying them and breaking them with abandon. It is roller coaster writing, to be sure, but it seems to be a ride with an lengthening line up.
The lesson: be you, write you, and write wild and free.
2. Get your great stuff out there
In two words: guest post.
I don’t have a commenting strategy – or maybe I do, but it goes like this: don’t really do it, unless profoundly moved or delighted by the post or am crushin’ on the writer and you know who you are – so guest posts are almost exclusively how I get in front of new audiences.
Guest posts bump up my traffic significantly. In the last two months, the single greatest driver of my traffic was, you guessed it, ProBlogger. There was even one day when I had two guest posts up on both ProBlogger and Write to Done.
That day was a good day.
(That day was the day I started making money – but that’s another post, entirely.)
You know who I blame for my promiscuous guest-posting?
Josh Hanagarne, World’s Strongest Librarian. He encouraged/pushed/nagged me to guest post, but I was too timid. (Really. I was scared. What if people said no? Rejection is not my thing.) When coaxing me to approach other bloggers failed, spectacularly, he took a new approach.
He demanded a guest post from me for his site. So I sent him one and his people loved me up. It was like rolling around in a meadow full of daisies and puppies and then a unicorn slid down a rainbow and gave me a cupcake. Magic.
Then, after more encouraging/pushing/nagging from Josh, I wrote a guest post for Darren Rowse at ProBlogger. Of course, I didn’t submit it for ten days until I got exasperated by my own cowardice, cursed myself out and straight-up courted that fearsome dragon – Rejection – by pressing send.
Darren accepted it in something like 15 minutes and made nice virtual noises. Later, he said he’d publish as much as I could send him. That was all I need to hear. I sent him A LOT.
Suddenly I had confidence and started sending pieces all over the place.
And my blog grew. So did my traffic.
The lesson? Guest posts work predictable magic on your blog. Go forth, guest post, bewitch and bedazzle.
And have big, strong, nagging friends.
3. Write more, more often
I used to post new pieces 1-3 times a week. Now I post 5-7 times a week. I’ve simply developed a habit of writing every night. It is sometimes painful, almost always exhausting, I’m wasting money on cable I never watch, Facebook misses me something fierce, and I have very nearly stopped dating.
(Very nearly. Not entirely. If I stopped dating, what would I write about? I romance in the name of research. THAT’S HOW MUCH I LOVE ALL OF YOU.)
And then there’s Twitter. I’ve written 322,560 words on Twitter, which is basically a novel in Tweets.
Oh. That just made me a little sad.
But other than that twinge – I could have written a novel in the time I spent Tweeting, oh yes that stings - I’m ecstatic. I’m having so much fun. I’m seeing results.
And my blog is growing.
The lesson? Don’t worry about statistics. Worry about quality.
I didn’t set out explicitly to raise my Alexa rank. I set out to improve my blog, light my writing on fire, and make a lil’ love to my people (and find more of them). And, as a result, my blog took off and took my Alexa rank with it.
You can do it, too. Please do.
And then tell me all about it on Twitter, where I still won’t be writing my novel.
_____________________
Kelly Diels is a wildly hireable freelance writer and the creator of Cleavage, a blog about three things we all want more of: sex, money and meaning.
Share This
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The Fed is pulling out all stops to defend its secrets, including publishing self-serving mathematical gibberish. Please consider the St. Louis Fed article on the Social Cost of Transparency.
Unless you are an academic wonk, you will be stymied by pages that look like this …
There are 24 pages of such nonsense with titles like
- 2.2 Private Information and Full Commitment
- 2.3 Private Information and Limited Commitment
- 3.2.1 Decision Making in the Day
- 3.2.2 Decision Making at Night
- 3.2.4 A No-News Economy
Just for good measure here is the page describing 3.2.4 A No-News Economy
The article culminates with …
For an asset economy then, the prescription of “full transparency” is not generally warranted.
Approaching the problem under the premise that fuller transparency is always desirable may not be the right place to start.
Hiding Behind Empirical Formulas
The problem is Bernanke places his complete faith in such gibberish, so much so that he has lost all sense of real world action by real people. The result is that in spite of his PhD, he could not see a housing bubble that was obvious to anyone using a single ounce of common sense.
Moreover, had Bernanke simply opened his eyes instead of relying on a poor interpretation of an already fatally flawed Taylor Rule, the credit/housing bubble would not have gotten as big as it did, and we might not be discussing the above ridiculous mathematical formulas that supposedly show us the Fed needs to be secretive.
For more on Bernanke's love affair with the Taylor Rule (even though Taylor Disputes Bernanke on its usage), please see Taylor, NY Times, Dean Baker Call Out Bernanke.
Appeals Court To Hear Bloomberg's Freedom of Information Suit
Bloomberg has been in a battle with the Fed for two years over the Fed's “unprecedented and highly controversial use” of public money. In August it “won” the lawsuit but the Fed has appealed.
Please consider Federal Reserve Seeks to Protect U.S. Bailout Secrets.
The U.S. Court of Appeals in Manhattan will decide whether the Fed must release records of the unprecedented $2 trillion U.S. loan program launched after the 2008 collapse of Lehman Brothers Holdings Inc. In August, a federal judge ordered that the information be released, responding to a request by Bloomberg LP, the parent of Bloomberg News.
Bloomberg argues that the public has the right to know basic information about the “unprecedented and highly controversial use” of public money. Banks and the Fed warn that bailed-out lenders may be hurt if the documents are made public, causing a run or a sell-off by investors. Disclosure may hamstring the Fed’s ability to deal with another crisis, they also argued. The lower court agreed with Bloomberg.
The ruling by the three-judge appeals panel may not come for months and is unlikely to be the final word. The loser may seek a rehearing or appeal to the full appeals court and eventually petition the U.S. Supreme Court, said Anne Weismann, chief lawyer for Citizens for Responsibility and Ethics, a Washington advocacy group that supports Bloomberg’s lawsuit.
In her Aug. 24 ruling, U.S. District Judge Loretta Preska in New York said loan records are covered by FOIA and rejected the Fed’s claim that their disclosure might harm banks and shareholders. An exception to the statute that protects trade secrets and privileged or confidential financial data didn’t apply because there’s no proof banks would suffer, she said.
The central bank “speculates on how a borrower might enter a downward spiral of financial instability if its participation in the Federal Reserve lending programs were to be disclosed,” Preska, the chief judge of the Manhattan federal court, said in her 47-page ruling. “Conjecture, without evidence of imminent harm, simply fails to meet the board’s burden” of proof.
By the time the documents are released, the information may be useless, or not. Regardless, the battle is worth fighting just over the principles of the matter.
Fed Faces Subpoena Over AIG bailout
On Tuesday I commented on House Plans To Subpoena Geithner Over AIG Decisions
AP
Rep. Edolphus Towns, D-N.Y., said Tuesday he will subpoena the New York Fed for documents related to the bailout of failed insurer American International Group Inc.
Towns chairs the House Oversight and Government Reform Committee. The committee is investigating deals that diverted billions of AIG bailout dollars to banks including Goldman Sachs Group Inc.
The committee has been investigating e-mails from New York Fed lawyers telling AIG not to disclose details about the deal. The e-mails were released last week by California Rep. Darrell Issa., the committee's top Republican.
Issa asked Towns to subpoena the New York Fed after the Fed blocked a separate request for documents.
Audit The Fed
Of course we cannot forget Ron Paul's Audit The Fed measure that has passed the house. These measures show just how angry everyone is over the Fed.
The Fed has increased that anger and resentment by pointing the finger at everyone else. For details, please see Ben Bernanke Looks In Mirror, Sees Barney Frank.
Three Front Attack
- Appeals Court To Hear Bloomberg's Freedom of Information Suit
- Fed Faces Subpoena Over AIG bailout
- Audit The Fed
The more the Fed squirms in secrecy and denial, the more public resentment builds. The more public resentment builds, the more likely the Senate will go along with “audit the Fed”.
What's On The Fed's Balance Sheet?
The Fed's balance sheet (better thought of as a diaper or a garbage dump), is not only smelly, it is bulging bigger by the day.
We have a right to know what the Fed is doing, what the assets it is holding are worth, and what arrangements it might have illegally made with AIG or others.
Yesterday the Washington Post reported Federal Reserve earned $45 billion in 2009.
I have a few questions.
Really?!
- Does that count the $185 billion the NY Fed crammed down taxpayers throats over AIG?
- Does that count the real cost of any of its other inane off-balance-sheet recommendations approved by Congress at taxpayer expense?
- Does that include a marked-to-market accounting of Mortgage Backed Securities on its balance sheet?
- Does that include a marked-to-market accounting of anything other than specific items the Fed wanted marked-to-market?
The Fed conveniently ignores all of its recommendations that cost taxpayers hundreds of billions of dollars, some done illegally, and then has the self-serving, selective-myopia gall to talk about “gains”.
Bloomberg argues that the public has the right to know basic information about the “unprecedented and highly controversial use” of public money. Anyone thinking clearly has to agree.
Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List
guest post by Kelly Diels
In November, I rebranded and relaunched my blog. I screwed up, I suffered, I sniffled, I refuted the advances of a pervy tech wizard. And I thought: I’d better track my results to see if this was worth it. This better have been worth it.
It was.
On November 10, my Alexa rank was 1,082,076.
Two months and one day later, it is 173,556.
So, in just two short months (and one day), I raised my Alexa rank by almost one million places.
In three months (in the screen shot above, look at the bottom right figure of 1,766,896), my Alexa rank increased by almost two million places.
How’d I do it? I’m so glad you asked.
Once you get past the first set of ingredients – have a seriously small and unpopular blog – the recipe is simple. It simply requires a ridiculous amount of work and a bit of creativity.
Still, I’ve itemized and analyzed what I did differently in the last two months just so I could whisper sexy blog secrets in your ear.
Here is a list of my torrid confessions.
1. Write unique stuff
Yes, this is just another way of saying “write great content! great content! great content!”. There’s a reason everyone says it, repeatedly: because it works.
I admit it. When I started blogging, I was a wannabe. I wanted to be Steve Pavlina, Darren Rowse or Yaro Starak.
Now, I just wannabe myself. I’m lit-on-fire for the written word, I have big, ballsy opinions, I’m in bed with surprise, and I love to love. That all shines through in my transparent and sometimes pulpy posts. I know the blogging and business-writing rules and alternate between obeying them and breaking them with abandon. It is roller coaster writing, to be sure, but it seems to be a ride with an lengthening line up.
The lesson: be you, write you, and write wild and free.
2. Get your great stuff out there
In two words: guest post.
I don’t have a commenting strategy – or maybe I do, but it goes like this: don’t really do it, unless profoundly moved or delighted by the post or am crushin’ on the writer and you know who you are – so guest posts are almost exclusively how I get in front of new audiences.
Guest posts bump up my traffic significantly. In the last two months, the single greatest driver of my traffic was, you guessed it, ProBlogger. There was even one day when I had two guest posts up on both ProBlogger and Write to Done.
That day was a good day.
(That day was the day I started making money – but that’s another post, entirely.)
You know who I blame for my promiscuous guest-posting?
Josh Hanagarne, World’s Strongest Librarian. He encouraged/pushed/nagged me to guest post, but I was too timid. (Really. I was scared. What if people said no? Rejection is not my thing.) When coaxing me to approach other bloggers failed, spectacularly, he took a new approach.
He demanded a guest post from me for his site. So I sent him one and his people loved me up. It was like rolling around in a meadow full of daisies and puppies and then a unicorn slid down a rainbow and gave me a cupcake. Magic.
Then, after more encouraging/pushing/nagging from Josh, I wrote a guest post for Darren Rowse at ProBlogger. Of course, I didn’t submit it for ten days until I got exasperated by my own cowardice, cursed myself out and straight-up courted that fearsome dragon – Rejection – by pressing send.
Darren accepted it in something like 15 minutes and made nice virtual noises. Later, he said he’d publish as much as I could send him. That was all I need to hear. I sent him A LOT.
Suddenly I had confidence and started sending pieces all over the place.
And my blog grew. So did my traffic.
The lesson? Guest posts work predictable magic on your blog. Go forth, guest post, bewitch and bedazzle.
And have big, strong, nagging friends.
3. Write more, more often
I used to post new pieces 1-3 times a week. Now I post 5-7 times a week. I’ve simply developed a habit of writing every night. It is sometimes painful, almost always exhausting, I’m wasting money on cable I never watch, Facebook misses me something fierce, and I have very nearly stopped dating.
(Very nearly. Not entirely. If I stopped dating, what would I write about? I romance in the name of research. THAT’S HOW MUCH I LOVE ALL OF YOU.)
And then there’s Twitter. I’ve written 322,560 words on Twitter, which is basically a novel in Tweets.
Oh. That just made me a little sad.
But other than that twinge – I could have written a novel in the time I spent Tweeting, oh yes that stings - I’m ecstatic. I’m having so much fun. I’m seeing results.
And my blog is growing.
The lesson? Don’t worry about statistics. Worry about quality.
I didn’t set out explicitly to raise my Alexa rank. I set out to improve my blog, light my writing on fire, and make a lil’ love to my people (and find more of them). And, as a result, my blog took off and took my Alexa rank with it.
You can do it, too. Please do.
And then tell me all about it on Twitter, where I still won’t be writing my novel.
_____________________
Kelly Diels is a wildly hireable freelance writer and the creator of Cleavage, a blog about three things we all want more of: sex, money and meaning.
Share This
President Obama this morning took his 2010 Question-And-Answer Tour to the Senate Democratic Caucus, a few days after his foray to the House GOP Retreat in Baltimore turned into must-see TV.
If you have a comment, <b>news</b> tip, advertising inquiry, or coverage request, a question about iPods or accessories, or if you sell or market iPod products or services, read iLounge's Comments + Questions policies before posting, …
Last night we saw one of the best debates about media and politics in general, and Fox <b>News</b> in particular, that I've seen on TV in a while. That it was conducted by a professional talk-TV bloviator (Bill O'Reilly) and a late-night …
http://www.shumakerelays.com/
