If you said Golden Slacks got tapped to handle the FEDs business, DING DING DING…give that taxpayer a cigar!

Well, we all knew it was coming, Bill Gross told us exactly what was coming. We love Bill Gross, the founder of PIMCO, who yes, also got tapped. We reported Bill’s very frank assessment of what was coming from the FED after their last meeting.

CNBC has the details, Steve Liesman broke the story on CNBC Reports this evening...

Steve reports the FED will be purchasing 500 billion in Mortgage Backed Securities through the end of the second quarter of 2009. That is an aggressive pace says Steve. It will accept fixed rate agency MBS, Freddie Fannie, will buy 10 15 30 yr mortgages, funded by ‘creating money’, i.e. printing it.

The asset managers are required to put up “ethical walls” to separate the part of the company doing FED operations from those trading for profit, yeah good luck with that one, HA HA HAA!!  Blackrock, Goldman Sachs, PIMCO and Wellington Management will be the asset managers purchasing the MBS …

It had to be done, it should’ve been done with TARP One, they said that was what they would do. Finally, question now is, can the people who created the excess risk and took the profits from the loss we are all suffering at the outset, now be trusted to manage our attempts to reverse the damage with taxpayer money? Not while getting these bonuses man. Let Barney Frank and Waxman and the CBC loose at hearings but we had BETTER see some SERIOUS strings on Son of TARP as Kudlow calls it.

This action by the FED is totally at their own discretion without oversight, as is everything they do, for more on that listen to any questions asked by Ron Paul of Greenspan or Bernanke at the Humphrey Hawkins testimony before Congress. We love it when Paul takes it to the man…

But guess who may ride to the rescue and act as a sort of check on the FEDs activities? FOX NEWS!!! YES! Interestingly, Fox Business is suing under the FOIA to get access to whom this FED and Treasury money is going and what collateral the Treasury and/or FED is getting in exchange, information they have refused to release…

…Kevin Magee, Executive Vice President, FOX News commented, “The Treasury has repeatedly ignored our requests for information on how the government is allocating money to these troubled institutions. In a critical time like this amidst mounting corruptions and an economic crisis, we as a news organization feel it’s more important than ever to hold the government accountable.”

Steven Mintz, Esq. of Mintz & Gold LLP, and legal counsel for the network added, “Despite the several requests for expedited information filed by FBN, it has become apparent that the Treasury will not cooperate without mounting legal pressure. Therefore, we have filed a complaint in the Federal Court in New York and ask the Court to make the Treasury provide the information sought by the journalists at FBN.”…

So to wrap, the FED is printing 500 million to try and get mortgages under control, something Paulson promised to do with the 350 billion he gave the banks. And ps, the Foxes are now officially guarding the Henhouse and actually collecting commission to do so, while getting access to basically controlling the debt markets with this power. Nice deal if you can get it eh?

I hear rumblings tonight that Congress may not open the ‘Son of TARP Stimulus’ for debate until late January now. I hope this does not mean they plan to wait LONGER on housing to see how this FED action goes. For Gawd’s sake ITS TEH HOUSING STOOPID!! Almost immediately we have a new spin on that report via WSJ which seems to have Congressional DEMS implying PEBO has failed to deliver on needed stimulus plans…

“The weak economy demands quick action, and that is our intention,” House Majority Leader Steny Hoyer (D., Md.) said in an interview Tuesday. “But significant work remains to be done. We need to do this right and make wise investments, plus members and the public need time to review it. So the timing very well may slip.”

Rep. David Obey (D., Wis.), chairman of the House Appropriations Committee, added, “I had been hoping that the timetable would be this week” for having a proposal in hand.

But Mr. Obey said Mr. Obama’s team, which recently met with congressional committee leaders, is still determining the details of the package it wants.

-snip-

“First we’ve got to have some signals called by Obama,” Mr. Obey said. “It’s hard to negotiate with somebody if the other party hasn’t decided what they want out of the negotiations.”

(more…)