Can the Fed Go Bankrupt?

Discussion in 'Economics' started by balda, Mar 12, 2008.

  1. Trader50

    Trader50

    not possible
     
    #12     Mar 17, 2008
  2. No the Fed can't go BK....however the mechanism for their liquidly CAN vanish.

    The bids at Treasury Auctions can and are drying up.
     
    #13     Mar 17, 2008
  3. mokwit

    mokwit

    It can sort of go bankrupt if it debases the currnency to the point where creating anymore is just meaningless and thus has no effect at the margin. But don't worry will take another few years or so. With Roman coins or Weimar paper Deutshmarks the cost of producing probably beacme greater than the money the represented.
     
    #14     Mar 17, 2008
  4. amylase

    amylase

    What is it like when Fed fails?

    THink german hyperinflation
     
    #15     Mar 17, 2008