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Here is a little factoid I ran across this morning on how the Fed is monetizing Municipal Bonds.

The US Treasury is buying Municipal Bonds and then the Treasury sells those bonds to the Federal Reserve under QE2.

By doing the transaction in this manner, Bernanke can say that the Fed will not bail out the states.

Here is the story from the Utah Housing Corp press release in November 2010—

“””Utah Housing Corporation announced the closing of a $107 million bond sale that provided 30-year fixed rate mortgage loans for over 700 low- to moderate-income families to purchase their first home. Borrowers applied and were qualified at approximately 250 different Utah branch offices of banks and mortgage companies.

These lenders sold the loans to Utah Housing, exhibiting a successful 33 year long public/private partnership. The $107 million bond sale was Utah Housing’s largest in over two decades. Utah Housing sold $39 million bonds to the US Department of Treasury along with $68 million to the open markets.”””

http://b2b.utahhousingcorp.org/PDF/PR_2010_11_09.pdf

Thanks for posting that I hope everyone takes a look at it you should post it as it’s own thread so people see the sneaky ways they go about doing these things. It never ends the more you dig around the more dirt you find that gets little attention from the MSM.

Here is a little factoid I ran across this morning on how the Fed is monetizing Municipal Bonds.

Thanks for the link, but those bonds aren't financing a city or state.

The US Treasury is buying Municipal Bonds and then the Treasury sells those bonds to the Federal Reserve under QE2.

The Fed isn't buying bonds from the Treasury. Also, the only Mortgage Bonds they buy are guaranteed. I didn't see anything about these bonds having a guarantee.