Fed announces plan to buy Treasury debt, spur growth
• McClatchy NewsThe Fed will reinvest earnings from maturing mortgage debt into US Treasury debt, with an eye toward keeping long-term borrowing rates low. The move aimed to reassure investors who are hoping the Fed will do more to spur the economy and observers who
That is another way of saying that the toxic MBS the Fed took from the banks and gave T-securities will be moved from the ledgers of the Fed and returned to the market at full value. The taxpayers will pony up to pay for the T-securities by inflation. The NY banks and Wall Street will be rescued by the Fed and the people will pay for the new whip.