IPFS News Link • Federal Reserve
Federal Reserve Spending Another $556 billion in Mortgage Market
• American Banking NewsOf all the 10 misguided Federal Reserve programs, this is by far the most costly to the taxpayers. The decision to continue the spending program was made by the Federal Open Market Committee on September 23, when they also asserted they were going to slow the acquisition of mortgage-backed down in order to “promote a smooth transition in markets,”.
Consequently the 30-year mortgage interest rate fell to 5.04 percent this week, it’s lowest level since May. Freddie Mac and other lenders sponsored by the government guarantee the debt, which isn’t something to generate confidence in any way.
So far, depending how you add up all the money spread around by the government so far in the crisis, it tallies to about $11.6 trillion so far. Somehow the Treasury Department wants to comfort us with the assertion that all this spending is backed up by assets. Yes, all the $11.6 trillion is backed up by assets. Really. Just ask them, they’ll tell you, even though they refuse to identify what those assets are, which prompted Bloomberg LP to file a lawsuit against the Federal Reserve in order to have that information made available.
A judge agreed that the information should be allowed to be accessed by the public, but it is now being appealed. If they were so confident in the collateral it would have obviously been revealed.