Update: Issa says Fed in cover up, Bernanke to testify under subpoena..Market Mover: FOMC Decision and Statement…

Update 3: CNBC has the Issa story up here

Update 2: Dow as up 50 and now up 7 since FED announcement. I think the market is also scared shxt of what will happen as Congress goes after the Fed…that Issa announcement was simultaneous with the FED decision…

Update: Fed stands pat, rate unchanged, will maintain low rates for extended period (love you long time), removed the line about DE-flation, good finally! but NO EXIT STRATEGY. Bond rates up a bit as prices down a bit. Nothing in the stmt backed off quantitative easing at all, they reaffirmed it. If you are looking at it as a foreign holder of our debt, I see nothing here to reassure you, which to me suggests higher rates a comin’ from Bond Vigilantes…

Right before the announcement Darryl Issa R-CA came on CNBC backing a statement his office released saying Ben Bernanke and the FED had concealed concerns about the Merill BofA deal from OTHER REGULATORS, and Ben is appearing under subpoena to answer questions.

Not a good thing for market stability and as a shareholder I am biased on this. But if it is what I think it is, i think Bernanke and Paulson kept Sheila Bair and the FDIC in the dark on the potential losses for BofA if Merrill deal went thru..

if it helps FDIC get some of the power Team TOTUS is trying to give to the Fed (which will then promptly be given to Larry Summers in Jan) then I am all for it. the FDIC is the only regulator on the ball and Sheila Bair was warning about subprime exposure of broad market losses way ahead of everyone else…

anyway that is a WOW announcement that was buried in the FED release..Towns is trying to stop investigation into Countrywide VIP loans for Dodd and Conrad, but Issa is pushing as he can….

Best Market Lesson I ever Learned: DONT FIGHT THE FED*

30 minutes to FOMC Decision and statement. Widely expected to keep rates here at zero indefinitely, some say through 2012. Pfft! says MiM.

Good analogy today courtesy of CNBC’s Bill Griffeth of all people (he was inspired to a Buffetism by an interview today, lol), commenting on Caruso-Cabrera’s note that while the money supply is up the velocity is going to bite us- it is like we keep flooding the car with gas, overfilling the tank, but haven’t turned on the engine yet..

Exactly! And when we do, ka-boom! Hyperinflation backlash from hell..

Scenes from the FOMC meeting:

I hope we get a CLEAR EXIT STRATEGY and dare I say it? I even think a move to .25 on Fed Funds Rate would be wise. Yeah this is gonna be a long flat recovery for years and years, unless Team Totus and the Cabal of Dunces in DC succeed in cap n trade and market interventions all over God’s Green Earth in a quest for a new green economy, then I expect a W, another big drop down before we get back to where we are now and then we would start the long flat recovery all over again….

The Fed has a LOT of buying to do on MBS to live up to their quantitative easing statement, we are only 36% of the way there..it has been an utter fail at keeping rates low, will they back off, double down?

*Darth mix courtesy of BelaP and Metallica