Fed Reserve Buys $1 Trillion of Worthless Mortgages

Inquiring minds are reading The NYTimes’ article on the Fed Buying Worthless Mortgages. It is a great way to multitask. A reader learns some economic facts while learning why The Times is losing readers faster than the Titanic lost passengers during its maiden cruise:

The Federal Reserve provided most of the money for new mortgages in the United States last year, effectively lending more than $1 trillion to American homeowners.

Now the legacy of that extraordinary intervention is hanging over the central bank as it faces growing demands for an encore to help revive the flagging economy.

So…it didn’t do a darn thing to actually “help” the market. It just kicked the can down the road a year.

But wait! The NYTimes (and the Leftests/Progressives) declare:

While officials and economists generally regard the program as successful in supporting the housing market, it has left the Fed holding a vast pile of mortgage securities — basically i.o.u.’s from homeowners — that it does not want and cannot sell.

That is a success? Spending a $1 trillion, not fixing the problem, and having assets no one wants?

Yes, in a Leftist/Progressive ‘relative’ world, there are many definitions of success. The rest of the article is interesting.


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