A couple of days back I ran a post on the Bank CEO who said that 1,000 banks were going to fail in the next two years. Reader Carl showed the article about the coming bank failures to a friend of his who works in the housing industry, and this is what he wrote back.
"You have no idea. This is only the half of it. There are already tons of foreclosed homes still sitting on the books of these banks, not on the market. How do I know? I have friends at the LA County Assessor's office. To keep it short, it seems that, for the last year or so, there have been about 7 or 8 foreclosures (back to the bank) for every one property that the bank has sold. I don't know about you, but I am pretty sure these houses didn't just go to foreclosure heaven! The banks still own them!"
This was all caused by the bank legislation that the liberals passed under Clinton, forcing banks to take home loans from people who couldn't pay those loans, so that "everyone could have a house". Idiots.
Now it seems the FEDS don't want you to know.
* Fed urges judge not to enforce order pending appeal
* Banks say disclosure could cause loss of confidence
By Jonathan Stempel
NEW YORK, Aug 27 (Reuters) - The U.S. Federal Reserve asked a federal judge not to enforce her order that it reveal the names of the banks that have participated in its emergency lending programs and the sums they received, saying such disclosure would threaten the companies and the economy.
The central bank filed its request on Wednesday, two days after Chief Judge Loretta Preska of the U.S. District Court in Manhattan ruled in favor of Bloomberg News, which had sought information under the federal Freedom of Information Act.
Preska said the Fed failed to show that revealing the names would stigmatize the banks and result in "imminent competitive harm." The Fed asked the judge not to require disclosure while it readies an appeal.
"Immediate release of these documents will cause irreparable harm to these institutions and to the board's ability to effectively manage the current, and any future, financial crisis," the central bank argued.
It added that the public interest favors a delay, citing a potential for "significant harms that could befall not only private companies, but the economy as a whole" if the information were disclosed.
The Clearing House Association LLC, which represents banks, in a separate filing supported the Fed's call for a delay. It said speculation that banks' liquidity is drying up could cause runs on deposits, and trading partners to demand collateral.
"Survival can depend on the ephemeral nature of public confidence," Clearing House general counsel Norman Nelson wrote. "Experience in the banking industry has shown that when customers and market participants hear negative rumors about a bank, negative consequences inevitably flow."
In other words, con the people and lull them into a false sense of confidence while you pull the rug out from under them and rob them blind.