Epstein Secrets

0734390 You see, starting in early 2009, the Fed vacuumed up $1.25 trillion in mortgage backed securities (MBS) ... $175 billion in Fannie Mae and Freddie Mac debt ... and $300 billion in long-term Treasuries. The stated goal was to ease credit conditions, make mortgages and other loans cheaper, support e

met in D.C. and decided to fire up the printing presses. Led by "Helicopter Ben" Bernanke, they pledged to buy new Treasury securities whenever old Treasuries or mortgage securities matured over or were paid off. That means instead of shrinking its $2.05 trillion portfolio, the Fed will maintain it by pu

means instead of shrinking its $2.05 trillion portfolio, the Fed will maintain it by purchasing an estimated $10 billion to $20 billion per month in Treasuries. It's focusing on securities with maturities between two years and ten years. The stock market was impressed by the move — but only for a couple of

of the financial system in order to protect against future crises. We do not have to diagnose and correct the sources of the crisis, Fannie Mae and Freddie Mac, the community reinvestment act, so-called predatory lending, no- documentation loans, perceived global imbalances or savings gluts, Wall Street "gre

ries likely to spark runs? In this vision, demand deposits, fixed-value money-market funds, or overnight debt must be backed entirely by short-term Treasuries. Investors who want higher returns must bear price risk. Intermediaries must raise the vast bulk of their funds for risky investments from run-proof

fixed values and first-come first-served redemption. "Prime" funds invest in illiquid or low-grade paper to generate higher yields than available in Treasuries. The Reserve Fund, heavily invested in Lehman Brothers debt, "broke the buck" in 2008. Subsequently, the Treasury guaranteed money market fund debt

s including the Social Security Trust Fund and federal employee / veterans’ pension fund) + net liability of GSEs (related to likes of Fannie Mae and Freddie Mac). - Represents a claim on both current and future resources. e We Focus on Public Debt Levels - Public debt is the base for calculating net interes

r than Treasury yields with corresponding maturities as they include incremental credit risk associated with the banks that provide swaps compared to Treasuries, which are viewed as risk-free. 2)10-year Treasury swap spread turned negative on 3/24/10, while 30-year Treasury swap spread turned negative in 10/0