luv2read
08-13-2008, 10:01 AM
Good summary!
The Federal Reserve
The Fed swapped out Treasuries for tens of billions in mortgage securities it now holds on its books. It's highly likely that these securities will not hold their value. Of course, Bear Stearns was just the first major financial institution failure requiring a bail-out, but there will be more. Let's say the Fed gets stiffed for $10bn, a modest sum. That translates into $10bn less in profits for the Fed to send the US Treasury, and $10bn more for the taxpayer to pay......[more]
http://www.moneyweek.com/file/51983/the-true-cost-of-americas-bail-outs.html
The Federal Reserve
The Fed swapped out Treasuries for tens of billions in mortgage securities it now holds on its books. It's highly likely that these securities will not hold their value. Of course, Bear Stearns was just the first major financial institution failure requiring a bail-out, but there will be more. Let's say the Fed gets stiffed for $10bn, a modest sum. That translates into $10bn less in profits for the Fed to send the US Treasury, and $10bn more for the taxpayer to pay......[more]
http://www.moneyweek.com/file/51983/the-true-cost-of-americas-bail-outs.html