Bernanke's Next Parlor Trick
By Mike Whitney
Market Ticker: "Note that this is an intentional drain of "slosh", or liquidity, from the banking system. $125 billion in the last four days drained? ("Congress must Excise the Bernanke Cancer", Market Ticker)As soon as Paulson and Bernanke had pulled off their multi-billion dollar heist, the Fed chief created lending facilities (completely unrelated to the TARP) which provided government guarantees on money markets and commercial paper. This lowered LIBOR and TED spreads immediately and relieved the stress in the credit markets. The crisis had nothing to do with toxic assets; it was a cheap parlor trick by a professional charlatan. To this day, none of the junk securities have been purchased from the banks under the TARP program. $700 billion has vanished in a puff of smoke. Poof!