HOW DEEP IS THE FED??? WAAAAYYY Deep!
A report by Bloomberg.com about a lawsuit BY Bloomberg against the Federal Reserve Board of Governors is found HERE.
I can NOT follow all of the STUFF at the bottom of the article but it sure looks like the Treasury MAY need to bail out the Fed, if what the article says is correct!
Basically, the Fed bailed out Bear Stearns and A.I.G. by buying many of their assets, some of which have no market value (or other value) according to the Fed on Dec. 31, 2008. Furthermore, the Fed has also begun buying other assets, CDOs (collateralized debt obligations) or groups of mortgage backed securities (MBS), which are not fully valued to bail out banks.
Sounds like more of the "TOO BIG TO FAIL" syndrom we have heard since the mid-1980s!!!
Hmmm, ... WHAT'S UP WIT DAT?!!?
WE SHALL SEE!!!
I can NOT follow all of the STUFF at the bottom of the article but it sure looks like the Treasury MAY need to bail out the Fed, if what the article says is correct!
Basically, the Fed bailed out Bear Stearns and A.I.G. by buying many of their assets, some of which have no market value (or other value) according to the Fed on Dec. 31, 2008. Furthermore, the Fed has also begun buying other assets, CDOs (collateralized debt obligations) or groups of mortgage backed securities (MBS), which are not fully valued to bail out banks.
Sounds like more of the "TOO BIG TO FAIL" syndrom we have heard since the mid-1980s!!!
Hmmm, ... WHAT'S UP WIT DAT?!!?
WE SHALL SEE!!!
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