Showing posts with label Federal Reserve. Show all posts
Showing posts with label Federal Reserve. Show all posts

Wednesday, January 12, 2011

Could the Fed go Broke?

Could the Fed Go Broke?  The Federal Reserve is currently holding toxic paper purchased to bail out Fannie Mae and Freddie Mac, long-term government bonds, securitized mortgages, etc. Would a 1% increase in the interest rate cause the Fed to become technically bankrupt? A good CNBC interview with former FED member.