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To: FCom777 who wrote (28429)1/15/2012 3:55:04 PM
From: Al Greenleaf2 Recommendations  Read Replies (1) | Respond to of 222562
 
FCom, you know more about the financial markets that I ever will but, it appears from this long article, that the repo artists will grab derivative assets in the event of any financial failure, public or private, and that it would be the height of risk and foolishness to hold ANY bond as a "low yield, but secure" investment. Even more frightening is the financial incentive this gives to CREATE financial failures. Do I have this right?



To: FCom777 who wrote (28429)1/15/2012 6:11:42 PM
From: StockGamer2 Recommendations  Read Replies (1) | Respond to of 222562
 
We are all part owners of the Fed. The Fed's profits are turned over to the US Treasury.

From the below article:

"The 12 regional banks that make up the Federal Reserve system held $2.4 trillion in government debt, mortgage-backed securities and other investments at the end of 2010, according to a combined financial statement the Fed published Tuesday. The banks transfer almost all of their profits to the Treasury Department. The $79 billion received by the government this year is a 66 percent increase over last year’s payment of $47.5 billion. The Fed transferred roughly $25 billion a year in the decade before the crisis."

nytimes.com