by Egon von Greyerz
The Fed decided yesterday to spend another $ 1.15 trillion to try to save the financial system. They will spend $ 750 billion to buy mortgage backed securities and $ 300 billion to buy long term Tresuries.
These purchases will make the Fed’s balance sheet baloon to $ 4 trillion. Most of their assets will consist of worthless and unmarketable paper. Read the rest of this entry »