The article wasn't clear: were these funds paid back with interest? Or is it just revolving debt?
What would have happen if one of the counter parties went under? Does the Fed just right off the loss and newly created money that was loaned just vanish?
Of course, if housing prices return to levels reflecting their actual rental value, a lot of this won't be paid back. Its anyone's guess, really, because the situation is so complex and intentionally obscured.
This whole mess is a colossal indictment of the Fed and its easy money policies. No wonder they resisted admitting it.
My 3 month old daughter knew my voice, but didn't recognize my face when I shaved my beard. She would turn to see me when she heard my voice, but cry when she saw a stranger.
My second daughter easily recognizes her older sister voice at birth. My older one spoke to her constantly in the womb (usually asking her when she is going to come out and play with her). The best way to stop her crying is to ask my oldest daughter to sing to her (works better than my singing/soothing)
