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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: patron_anejo_por_favor who wrote (123623)5/16/2008 8:39:11 PM
From: Jim McMannisRead Replies (2) of 306849
 
Fed Balance Sheet Worries Volcker

online.wsj.com

Former Federal Reserve Chairman Paul Volcker said the Fed's independence could be hurt by the wide variety of assets it has taken onto its balance sheet to combat the credit crunch.

Since the credit crisis began last August, the Fed has expanded the volume and types of loans it is willing to make to banks and securities dealers -- loans that are backed by a wide variety of collateral from subprime mortgages to student loans. It has so far not directly purchased such debt. It did, however, make an unprecedented loan of $29 billion to facilitate the sale of Bear ...
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