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News Link • Economy - Economics USA

Fed Adds $59 Billion in Funds by Buying Mortgage Debt

• Bloomberg

1 Comments in Response to

Comment by Ernest Hancock
Entered on:
Blah blah blah... then the following statement in the article.

**QQ**In repos, the Fed buys U.S. Treasury, mortgage-backed and so-called agency debt from its 21 primary dealers for a set period, temporarily raising the amount of money available in the banking system. At maturity, the securities are returned to the dealers, and the cash to the Fed.**QQ**

A little research on if these **QQ**dealers**QQ** have always paid back the Fed would be interesting. I remember the Resolution Trust Corporation (RTC) of the early 90**Q**s was created to sell off all of the bad debts for pennies on the dollar (bad guys bought them and large chunks of course).

The raking of poker chips from the table is happening before our eyes,... but they have flowery language for it though.

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