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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: ahhaha who wrote (404324)5/7/2010 5:01:10 PM
From: Real Man  Read Replies (1) of 436258
 
newyorkfed.org

Yes, it is written here as well, p. 8.

What is the term for MBS and Agency purchases, 1 or 28 days?

PERMANENT MBS and Agency purchases were discontinued on March,
31. It was done. They are sitting on SOMA balance sheet. Until
they are sterilized, they are permanent.

I agree with you, the Fed can create value out of nothing. That's
exactly what they did. I call it digital printing, Ben Bernanke
does too, in his former speech.

The Fed creates money, the banking system creates credit.
If credit blew up and the Fed created money to replace
bad assets in reserves, then they PRINTED that amount.

If they sterilize it later on, then net-net it will be nothing.
But that assumes blown up assets return to good, which is
a wrong assumption.
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