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Politics : Formerly About Advanced Micro Devices
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To: Jim McMannis who wrote (543369)1/15/2010 6:09:07 PM
From: TimF  Read Replies (1) of 1574511
 
Made $46 billion on a $1 trillion investment. Better than nothing I guess. MM rates.

Apparently $1.8 trillion, so about two and a half percent return.

And those rates with a much higher risk. Basically you have very high risk loans making the return one would expect from a very low risk loan.

From the article Ted posted -

"The Fed, similarly, takes money that banks keep on deposit, at a rate of 0.25 percent, and lends it to the U.S. government by buying Treasury securities and, lately, to home buyers and other private borrowers though more exotic investments."

If someone's going to hand me massive amounts of money at 0.25% with no restrictions on what I could do with it, I think I could get a decent return as well.

The money going to the private borrowers should get a much higher rate of return since some of those "more exotic investments" are risky.
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