Federal Reserve buys US Real Estate?

[Brian4Liberty]

"Aug. 10 (Bloomberg) -- The Federal Reserve added $19 billion in temporary funds to the banking system through the purchase of mortgage-backed securities to help meet demand for cash amid a rout in bonds backed by home loans to riskier borrowers."

On the surface, the Fed is keeping the market moving (liquid) by buying this debt that no one wants right now, but it seems like there are some strange implications:

Fact: The Federal Reserve is a private banking group, authorized to handle the money supply for the US Government. They are not part of the US government.

Assumption: Mortgage-backed securities and debt instruments, followed to their origin, are backed by a real asset, i.e. property and/or structures (residential/commercial).

Question: When the Federal Reserve purchases something, who owns it? The Private Federal Reserve banks, or the US government?

So the bottom line here is that if these mortgages go into default, the Federal Reserve may own a lot of US real estate.

That wouldn't seem appropriate...

[Bradley in DC]

Backhanded complement to Dr. Paul's activism?
Now we might get an asset-backed dollar! :D

[Cindy]

I wish I saved a link to the web site that disgussed the plan for the private bank owners of the Fed Res to increase their realestate land wealth through gobbling up loans in default after they created a bubble burst.

It was written 3 years ago before they actually did this and it looks like the source was spot on.

It's legal for them to buy the defaulted on properties as anyone can. What comes into question is the stage they helped to set to create an over flooded market of defaulted on properties. While so many are out their, county commisioners, being bribed by builders, keep approving development plans to even build more homes in an already overflooded market. :(

[specsaregood]

It's legal for them to buy the defaulted on properties as anyone can. What comes into question is the stage they helped to set to create an over flooded market of defaulted on properties. While so many are out their, county commisioners, being bribed by builders, keep approving development plans to even build more homes in an already overflooded market. :(

I was kind of expecting china to start buying up all those properties...

[Johnnybags]

using mtg backed securities as collateral, they entered three times, unprecedented and I think only after 911 was it more or close. We need to abolish these dopes fast.

[Cindy]

I was kind of expecting china to start buying up all those properties...
Me too.

They do have banks in the Federal Reserve. Wonder where we can get a break down of which banks bought how much.

[Johnnybags]

Houston, we have a problem, he just said yesterday all was well? Why is he monitoring markets? Ah, a fresh 38 billion of counterfiet money for the banks who squandered their money away loaning to the hedgies at 40-1 leverage. No loss for the banks just inflate all goods and services for the middle class.

[JosephTheLibertarian]

yes.. you hear? The central banks all over the world have been injecting cash into the markets, a transfer of wealth from the poor to the rich!

[Brian4Liberty]

I wish I saved a link to the web site that discussed the plan for the private bank owners of the Fed Res to increase their real estate land wealth through gobbling up loans in default after they created a bubble burst.

It was written 3 years ago before they actually did this and it looks like the source was spot on.


Wow! It figures. I never realized they would be able to purchase assets in this way. This really seems criminal.

It did occur to me long ago that if the dollar were to completely collapse, the same Federal Reserve bankers will step in with a world currency replacement, to start their pyramid scam all over again...

UN Currency anyone?

[fsk]

I believe it was a repurchase agreement, not a purchase agreement.

The Federal Reserve agreed to purchase the mortgage bonds today and sell them back for slightly more a few days later. The banks will still have the ultimate responsibility for the bonds.

[Johnnybags]

what makes you think the broken banks will have 38 billion to buy em back later? Methinks this is the beginning of a government takeover of alot of these problems, fannie and freddie will be next and the old fed will own the country. Funny how it happened as the SEC began an investigation into the books of the big guys today. Now the quant funds are going belly. Take your pick, inflation depression or depression? Its on its way. Bush was glued to the markets today.

[freelance]

Welcome to Rothschilds Estates!

[CJLauderdale4]

EU pumped out ~$138 Billion today too.
I also heard Japan pumped out a few Billion themselves...

Crazy....

[Chester Copperpot]

Theyre buying bad debt from the banks that arent worth the paper theyre printed on.. The properties are probably worth 20% on the dollar.. But the fed whips out the printing press and buys the notes to keep the banks from going under.



The Fed could write a check to Staples for $1 MIllion and buy a million dollars worth of office equipment.. Staples would get their million and the fed would get their equipmemt but again.. where did the money come from??? Thin air....

[MozoVote]

Whenever you see the words "Injected Liquidity" in a MSM article, mentally alter it to "created future inflation".