Things are so great, we need to monetize the debt

[pghquest]

Originally Posted by HappyTexan

The fact that the Fed is suing BofA over crap mortgages tells me alot about what is hiding in the closet of the Fed in the name of "collateral" for loans.

have a link? I didnt hear about this.. If true the circle would look something like..

BOA borrows money from the fed to loan out to mortgages..
BOA loans money to people to buy homes getting a Fannie/Freddie guarantee that mortgages will be good
The fed then buy back these mortgages from BOA paying BOA a fee
A home owner defaults
BOA retrieves the documents from the Fed to foreclose
These foreclosued documents then go to Fannie/Freddie,
Fed then takes over the problem properties

Sounds to me like Obama should have written legislation to allow the fed to loan directly saving everyone a bunch of money, rather than going after student loans..

[HappyTexan]

Originally Posted by pghquest

have a link? I didnt hear about this.. If true the circle would look something like..

BOA borrows money from the fed to loan out to mortgages..
BOA loans money to people to buy homes getting a Fannie/Freddie guarantee that mortgages will be good
The fed then buy back these mortgages from BOA paying BOA a fee
A home owner defaults
BOA retrieves the documents from the Fed to foreclose
These foreclosued documents then go to Fannie/Freddie,
Fed then takes over the problem properties

Sounds to me like Obama should have written legislation to allow the fed to loan directly saving everyone a bunch of money, rather than going after student loans..

Google and you'll find a lot more.
New York Fed And PIMCO Suing Bank Of America Over Mortgages

NY Fed suing BofA and BofA is suing the FDIC.
At the bottom of this mess are Countrywide mortgages..
Remember that the Fed took any and all paper from the banks as collateral for loans. My guess is the Fed is now holding "questionable" paper and has a fiduciary responsibility to sue on behalf of taxpayers.

"Oh what a tangled web we weave"

Blackrock is suing BofA and BofA owns 34% of them.
The BlackRock - Bank Of America Ownership Catch 22 | zero hedge

[workingclasshero]

Originally Posted by Winter_Sucks

Just think how good of shape we would be in today if Reagan didn't triple the national debt and then have Bush double the national debt after that.

funny you didnt mention that clinton nearly doubled the debt from 3.5 trillion to 5.87 trillion

or that obama has added nearly 4 trillion in less than 2 years..easily in his way to doubling or tripling the debt

partisan much??

[Mircea]

Originally Posted by HappyTexan

The fact that the Fed is suing BofA over crap mortgages tells me alot about what is hiding in the closet of the Fed in the name of "collateral" for loans.

Gotta love that FIRE Economy.

[monkeywrenching]

do not monetize the debt, just default on both the funded and unfunded debt of the USA.