All well and good but the Federal Reserve is a private bank with a public veneer. When cruchtime comes it does the bidding of the banksters and swaps the bansters toxic debt for nice shiny Treasury issues to make the banksters books look better. The Fed has a few trillion of toxic sludge on its books now which back up those paper FRNs in your wallet. Previously at least your FRNS were 100% backed up by US Treasuries. Still are in part but only in part. Almost forgot. The Fed now has billions in toxic Fanny/Freddy crud on its books.
The NY Fed is even more of a private bank doing the bidding of its member banks. Dittos for the other 11 Fed Reserve banks
Well actually I believe the FED didn’t buy the toxic assets. They made loans against them. The banks retained the toxic assets and used them as collateral to obtain the loans.
Well actually I believe the FED didn’t buy the toxic assets. They made loans against them. The banks retained the toxic assets and used them as collateral to obtain the loans.