Resolved Question: Why did Obama tell the Fed to buy 1.25 TRILLION in Toxic Mortgages?
Aug/100
Do the Democrats have any idea whatsoever who’s money this is?
The New York Fed is a big, fancy place — lots of marble, a vault full of gold in the basement. But Remache and her team worked in a plain room with four small cubicles. There were no marble floors or oak tables. Just a Nerf football net, a table-tennis trophy, and two yoga balls.
The team spent six weeks coming up with a plan of attack, and 15 months actually buying mortgage-backed bonds, all of which came with a government guarantee that they’d be paid back even if the borrowers defaulted.
The program’s intent was to keep interest rates low, and slow the decline in housing prices. The team ended up buying more than a fifth of all of the government-backed bonds on the market.
“It’s possible I was buying the mortgage on my own house,” says Nathaniel Wuerffel. “Very possible.”
In the end, they came very, very close to their target: They told us they were just 61 cents short. (In other words, they bought $1,249,999,999,999.39 worth of mortgage-backed bonds.)
http://www.npr.org/blogs/money/2010/08/26/129451895/how-to-spend-1-25-trillion
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