Wednesday, March 18, 2009

Fed Writes $1.2 Trillion Check (on Credit)

The Federal Reserve Bank printed another $1.2 trillion to stimulate the economy. WaPo reported:

The central bank will increase its purchases of mortgage-backed securities by $750 billion, on top of a previously announced $500 billion. It also will double its purchases of debt in Fannie Mae and Freddie Mac to $200 billion. The Fed also said it will buy $300 billion in long-term Treasury bonds.

America kick starts securitization. As for the long term Treasuries, did China quit buying U.S. debt? Maybe Zimbabwe will take their place.