Timmay's leverage source

Discussion in 'Economics' started by bond_trad3r, Mar 23, 2009.

  1. This bad asset buying program announced today... Am I correct to assume that $1 of private sector money will be matched with $1 of taxpayer money then leveraged up 8-1 using money from the Federal Reserve?

    Sounds like the Fed is being used as a hedge fund.

    The Fed's balance sheet is going to explode.
  2. It's 6-1 and it's from the FDIC. What is the FDIC's funding source. Isn't it the treasury? Which will mean that any loans given by the FDIC will have to be raised in the form of additional national debt??
  3. Timmay! Timmay! Timmay!