Throwing money at the mortgage mess:
The Fed is on track to purchase $1.25 trillion of mortgage backed securities, and has said it plans to complete the purchases by the end of March. The purchases have helped to drive down mortgage interest rates, providing an important boost to housing and financial markets. When the Fed stops buying, mortgage rates could turn higher.
But it gets worse.
Let’s see, that adds up to 2.35 Trillion Dollars. That is a lot of f**king money.
To put that in perspective, if you think of one million as a lot of something, one trillion is one million times one million: 1,000,000 * 1,000,000 = 1,000,000,000,000
So 2.35 trillion dollars is $2,350,000,000,000 more debt we just piled up.
Payable by you, me , our kids, and our grandkids, that is. And for what? To delay the inevitable continuation of bank failures caused by bad mortgage debt?
Can somebody explain the long-term benefit of this to me? Please?