[Toddsterpatriot]

They already have bought corporate bonds

All of them?

& through swaps already are have CDOs on their books

All of them?

They already are buying FRE/FNM bonds by the billions

How many more are still outstanding?

The only thing left is to buy the long bond.

LOL!

[rb22982]

The fed doesn't have an infinite amount of money and the banks & GSEs are clamoring for more & more money. The states are just starting to ask for money. How big do you think their balance sheet can get to without risking implosion themselves (and the rest of the financial system & possibly the US gov't)? At the rate they are going, it will have ballooned from $500 billion to $6 trillion in about a year with very little underlying that. I've read reports that the fed is basically already a hedge fund leveraged up themselves 40-50:1. This guy tells it a lot better than I do.