It’s stupid ap headline. . . the real news is this:
The central bank will buy an additional $750 billion mortgage securities, bringing its total purchases of these securities to $1.25 trillion. It also will boost its purchase of Fannie and Freddie debt.
That’s an outrage! Can we talk about this instead of AIG?
If the Fed buys $750 billion in CMO's and they default, what happens? I think they can cover the loss by just printing more currency. How does this work?
Can we talk about $180 BILLION AiG instead of beating on 73 employees who happened to get retention bonuses of $165 million as incentive to hang in there while the beatings continue! Heh, but your point is spot on....the 'journalist' who 'keyed' on the 300 instead of the real news was definitely math challenged.
Damn good point. Outrageous.
Please get educated.
The Federal Reserve is a private corporation and is not using public funds.
They are diverting their own funds to push mortgage rates down.
You feel better now?