[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.

[Toddsterpatriot]

The fed doesn't have an infinite amount of money

Why not?

and the banks & GSEs are clamoring for more & more money.

I wonder if the Fed bought securities from the banks and GSEs if that would give the banks and GSEs more money?

I've read reports that the fed is basically already a hedge fund leveraged up themselves 40-50:1.

Who did the Fed borrow money from?