The Fed and Oil Prices, Part I THE 'REAL' STORY?

Many have blamed the fed for causing a crisis in confid
in the USD which sent oil and the CRB complex to the
moon.
MY TAKE:
By allowing 'emergency' access to the discount window
in an effort to flood the banks with cash (adding liquidity)
and 'assisting homeowners' by making mort funds avail,
the fed managed to accomplish the exact opposite.
Banks and brokers took the money, raised mort rates
and lending standards (smart move, why lend to a
potential deadbeat?), found themselves with a huge
surplus of liquidity.
Some of that money went into stocks for a short term
play (see the april fools rally, LOL). Much of it went
into rice, corn and oil.
Pull up a chart showing the CRB and you'll note the
glaringly obvious correlation.

"ARRESTING THE OIL SPECUTATORS":
While congress and the below average IQ american
go looking for scapegoats, Benny the Inkjet was re-
latively mute as was Bush. Ditto Paulson who
redirected ire at Shortselling Scumbags
"Its supply and demand", LOL..

If the american public was ever to learn that the same
banks and brokers that ruined their home values were
also bidding up energy prices to make use of that
generous Fed offer at the discount window . . . . well,
if its not on FauxNews, they won't get it.

LOOK @THE CHARTS!!!!!
The Fast Money Benny made available to the bankers
and brokers needed to find a place to live on a short
term basis. They knew benny
would be cutting and strutting.
Can't lend to homeowners, "THEY" caused this mess
in the first place with sub primes and HELOC's, besides
real estate was sooooo 2004-6.
Corporates were too solvent to need money at low rates
and "Junker Bonds" were not delivering the types of
premiums high rollers need.
Energy, corn, NatGas. Liquid, fairly anonymous and
in a mild uptrend to begin with. The 'rumors' swirling
around the Energy traders are usually bull***, but this
time the rumors of Banks liquidating energies was so
widely circulating that it just may be so.

If and when this sees the light of day and people realize
that 'their' money was used to drive up energy costs,
we just might see a Bolshoi Revolution.

I'm not saying the banks are/were solely responsible for
this run up, many mitigating factors are at play. I am
conspiratorially minded at best, damn paranoid at worst.
.

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