Tuesday, November 25, 2008

FED Now Buying Bad Debt

The FED is still spending like a drunken sailor.

Under the new mortgage program, the Fed will buy up to $100 billion of debt issued by government-sponsored mortgage enterprises Fannie Mae, Freddie Mac and the Federal Home Loan Banks. It will also buy up to $500 billion of mortgage securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae.

I must be nice to just print more money when you have a need for it. I guess this is just more US debt that China gets to hold.

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