[politicket]

The Federal Reserve should normally only deal in government debt.

The Fed is carrying trillions of debt at face value on their balance sheet.

The "slight" problem is that the debt is actually toxic and worth zero.

They can't sell it. They can't give it away. It's no different than the toxic waste at Fukishima.

[Toddsterpatriot]

The Fed is carrying trillions of debt at face value on their balance sheet.

The "slight" problem is that the debt is actually toxic and worth zero.

It's US Treasury debt and guaranteed MBS. Why is it toxic?

They can't sell it. They can't give it away. It's no different than the toxic waste at Fukishima.

Why would they have to do either?