$9 Trillion Fed blackhole draws cries for GAO audit

Posted May 22nd 2009 4:30PM by Alex Salkever
Filed under: Insider Blogging, Federal Reserve, Financial Crisis

You had to see this coming. The U.S. Federal Reserve is now being subjected to cries for transparency that it has said are necessary for the financial institutions it regulates. The campaign is being spearheaded by Florida Democratic Congressman Alan Grayson. Believe it or not, no one currently audits the Federal Reserve's accounts. And some skeptics have come to think that the Federal Reserve's fiscal house is not in order and that the Fed has actually not been able to balance its books and account for all the assets it has purchased. Zero Hedge claims the Fed cannot account for nearly $9 trillion in off-balance sheet transactions.

That's pretty scary. In response, some leading lights (including my favorite, ZH) of the econoblogosphere and media are circulating a petition demanding that the Federal Reserve be subject to regular audits by the GAO. It's about time, frankly. Some that have have signed up and are pushing the petition include:

Michael Greenberger, Law School Professor and Director of the Center for Health and Homeland Security at the University of Maryland
James I. Sturgeon, Professor & Department Chair of Economics. University of Missouri-Kansas City
Michael Froomkin, blogger and Professor of Law, University of Miami School of Law
John Amato, founder, Crooks & Liars
Cenk Uygur, host of The Young Turks

Alex Salkever is Director of Research at Piqqem.com, a stock prediction community and analysis tool powered by the Wisdom of Crowds.

Tags: Alan Grayson, fed, federal reserve, GAO, geithner, inthenews, Zero Hedge

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Reader Comments (Page 1 of 1)

5-22-2009 @ 6:54PM

JIM said...

Obama spent more money then 40 other US Presidents combined..And he did it in less then 4 months...

The debt racked up by these 40 past Presidents equalled 2/7 trillion..Those figures include the war of 1812, world wars 1 and 2 the korean war, Vietnam, plus a few others..

5-22-2009 @ 9:03PM

Larry said...

Bush increased the federal debt more in his last 4 months than Obama did in his first 4 months. You can see for yourself here: http://www.treasurydirect.gov/NP/BPDLogin?application=np

5-23-2009 @ 12:13AM

trevor said...

Bush doubled a 200 year debt in six years...
Obama blamers are ignorant. Read first. Personally not a fan of him.

Ron Paul! Has been pushing to get the Fed audited for a while now, there is a petition getting around. Campaign for liberty, google it.

5-23-2009 @ 3:26AM

wlampe said...

Larry, it's not how much debt was accrued, rather how quickly, partisanly & stupidly it was spent. BHO & his band of socialist (small piece of pie eating) idiots bail GM out at a cost of billions to us, only to let them go into bankruptcy 1 - 2 months later. Same with several banks. And don't get me going on stimulus....

This administration is bothersome on so many levels, starting with their arrogant, agenda-focused & irresponsible spending.

5-23-2009 @ 4:57AM

al coholic said...

Both of these comments could easily be correct...they refer to different criteria. The bottom line is, we have condemned our children and our grandchildren to pick up the tab for our indulgences. This mess will take decades to correct.