Default NY Fed buys $989 million of U.S. agency debt

[The Northerner]

Source: Reuters

NEW YORK (Reuters) - The New York Federal Reserve said on Friday it bought $989 million of U.S. agency debt with maturities ranging from October 2016 to June 2018.

Dealers submitted $3.302 billion of agency debt for consideration in the purchase.

Friday's operation brings the N.Y. Fed's cumulative purchase of agency debt to about $164.759 billion since early December 2008.

The N.Y. Fed, which conducts open market operations for the U.S. central bank, has said it would buy about $175 billion of agency securities issued by Fannie Mae (FNM.N) (FNM.P), Freddie Mac (FRE.N) (FRE.P) and the Federal Home Loan Bank system aiming to hold down mortgage rates and revive economic growth.

Read more: http://www.reuters.com/article/idUSTRE60S4D520100129?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FbusinessNews+%28News+%2F+US+%2F+Business+News%29

[BR_Parkway]

1. I don't get it - the Fed prints up money for us to spend because we're

broke, then buys up the debt created? If I played this with a few cards and a $20 bill, they'd haul my ass to jail.

[TwixVoy]

2. No you would not be taken to jail

Many americans play the same game. Pay off one credit card with another. Ever hear of a balance transfer? That's part of the reason so many are screwed.

Our government is playing the same game. Unfortunately just like the balance transfer game it comes crashing down in the end.

[joshcryer]

3. Money would have no value if the guys printing it didn't treat it like we are supposed to.

It's just old blue jean scraps.

[truedelphi]

4. But Bernanke just got re-instated.

And was allowed his get-out-of-jail free card.

All this goes to show is that if you wanna be a crook, ya gotta have enough connections that:

1) first you work for Goldman Sachs, or are best friends with those that do
2) your political connections entitle you to a position heading the Fed or the Treasury
3) you are so indispensable that you will always be re-confirmed, (Otherwise the SKY will crumble) no matter how huge the catastrophes that you have enabled or outright created
4) you can claim, (again with a straight face) at the same time you are claiming you are indispensable, that you have never actually had anything to do with any major matters

Of course all of this requires that you maintain the most poker-faced, I am telling the truth kinda expression if you are ever hauled before the House Committee on Government Reform, or before the Senate.

[TatonkaJames]

5. I think it's called Double Dipping

If I'm correct on this they print up the money but charge the government (taxpayers)
interest on it as a loan ?

[askeptic]

11. Fed does NOT Print money

Only the U.S. Treasury can print money. Just correcting a common misconception that is easy to check out.

[Dover]

6. "A lot of people think that the pres. of the NYFed works for the U.S. government..."

As Representative Marcy Kaptur told Geithner at the hearing: “A lot of people think that the president of the New York Fed works for the U.S. government. But in fact you work for the private banks that elected you.”

And yet the New York Fed played an integral role in the government’s bailout of banks, often receiving surprisingly free rein to act as it saw fit.

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Read the whole article here. Eye opening!

Secret Banking Cabal Emerges From AIG Shadows: David Reilly (Bloomberg)

http://bx.businessweek.com/us-economy/view?url=http%3A%2F%2Fc.moreover.com%2Fclick%2Fhere.pl%3Fr2506254390%26f%3D9791

[dixiegrrrrl]

7. Fed HAS to buy it when no other buyer will.

They have been doing that for some time now.
It is not good news. It means other banks and investors are shying away from the treasuries.

[defendandprotect]

8. And $26.7 TRILLION in guarantees to capitalists --!!! DUMP THE FED!!

[defendandprotect]

9. PLUS we're support a criminal enterprise called "capitalism" . ..!!

[FarCenter]

10. The Fed must buy this mortgage debt because no one else trusts US homeowners to pay off mortgages