Tuesday, May 12, 2009

Stress testing the 19 major US financial institutions for a worse than forecast two year scenario.

Several financial and general press reports have been filed. However, there are other resources to study.

Ron Paul and crowd might accord little faith to the Fed, for political and ideological reasons that might have substantial though debatable validity. Beyond that caveat, here are the links:

First, Bernanke, yesterday, and you have to love the location: speech at Fed Bank of Atlanta 2009 Financial Markets Conference, Jekyll Island, Georgia.

Second, last week's Joint Press Release - Joint Statement; Fed, Treasury, FDIC, and Comptroller re the SCAP (Supervisory Capital Assessment Program.

The Bernanke - Jekyll Island speech referenced IMF and other opinions, describing how premises underlying separate studies and access to bank data differed; key IMF pages being here, here and here.

IMF background links are here, here, and here.

Finally, given how some have said AIG operated "like a hedge fund" in its lax attitude to the magnitude of counterparty risk it underwrote and assumend, there is the Bank of Canada "Hedge Funds and Financial Stability: The State of the Debate" paper of Sept. 2007, here.

That's a sampling, without any claim of it being comprehensive or unbiased.

For those wanting something else, and fitting into the Ron Paul world view, I have and will be reading via interlibrary loan through Anoka County's library system, the Bemidji Public Library's paperback copy of "The Creature from Jekyll Island," at 600+ pages.

Shorter and easier to read, one of the local library's copies of Ron Paul's "The Revolution - A Manifesto." Nothing about workers uniting or losing chains, a different manifesto in that sense, but the two texts meet in the upcoming "End the Fed," to be released, written [ghosted yes/no] by Ron Paul.

See: here, here, here, here, here, and here, for more. If you don't end it -- Audit it? Gain transparancy?

Google Books has a number of historical books on banking before the Fed was formed, and contemporaneous or shortly subsequent to the establishment of the Fed during the Woodrow Wilson "progressive" years, those items being out of copyright and downloadable from Google Books.

It's a load of reading, but they are the guys who print our money and manage and engineer its "supply-side," hence, they are either part of the cyclical problem or part of a solution, and there is the presently web-widespread Jefferson quote some offer as real, and some say is spuriious - see, here.

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If you believe that Federal Reserve notes as "legal tender" are suspect and problematic, please lessen your problems by sending me whatever holdings of such notes you possess.

You will feel better if you do. Trust me.