Where the banks will invest the money gotten from selling mortgages to the Fed?

Discussion in 'Economics' started by latinotrader, Nov 4, 2010.

  1. The Fed has announced they will buy billions in mortgages.
    Of course, the banks hold most of these mortgages.

    Where will they invest this money?
    Aren't all markets already overbought enough?
    Or they will just keep it to meet withdrawals?

    This is the most imprtant question to ask regarding investing.
  2. When has the Fed announced that they will buy billions in mtges?
  3. The money would be used to pay out record bonuses.
  4. olias