Beyond the $1.75 trillion in mortgage related assets and treasury securities the Federal Reserve already has committed to buying, the board said in its April meeting that it was not ruling out buying even more private assets. Further intervention in the market to purchase more private assets will only prolong the recessionary pain we’re feeling now. The Fed should never have purchased any of their assets and the sooner it discloses what it has bought and how much it’s lost, the better for the economy. Those privileged banks should face market tests of profit and loss rather than receiving bailouts for bad decisions from the Federal Reserve.
We need to audit the Federal Reserve and Ron Paul’s bill, H.R. 1207, will do just that. Ron Paul and the Campaign for Liberty have been building momentum for the bill and are up to over one hundred co-sponsors in the House.
Here’s a link to the minutes from the Fed’s April meeting.