Posted on 03/23/2011 11:45:48 AM PDT by Libloather
I’ll give you a hint, when you can create money out of thin air your cost of funds is.........
OK, I gotcha. I didn’t understand what you were getting at.
It’s difficult, even for a stupid public sector employee, to create money out of thin air, buy government guaranteed securities and lose money. We’ll see how they do over the next few years.
“Has that even been disclosed?”
That is an excellent question. I see no one has answered it.
My guess is NO. I have not read that that information has ever been disclosed.
Dated 12 - 14 - 2010
“Today we get a brief glimpse of what will happen to the Fed’s balance sheet when rates surge. In the span of one day, the Fed took an $8 billion unrealized loss on its $1.07 trillion in Bonds, TIPS and Agencies. It also likely experienced a comparable loss on its MBS portfolio. It’s a good thing the Fed has $57 billion in capital accounts. Which means 4 days like today, and all of the Fed’s equity buffer is wiped out. What happens next is up to congress.”
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