as far as I know these Fed shopping of treasury bonds goes into
their balance-sheet....What about if in a few months the interest
rates on those bonds explodes and those assets suddenly are worth
close to nothing???Whose balance-sheet will sufer those
losses???
Will it be the fed that will at that time have the need to be
rescued???and by whom???
Tx for your comments in advance
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QE2
Posted by alseq on 4th of Nov 2010 at 11:10 am
Matt and Steve,
as far as I know these Fed shopping of treasury bonds goes into their balance-sheet....What about if in a few months the interest rates on those bonds explodes and those assets suddenly are worth close to nothing???Whose balance-sheet will sufer those losses???
Will it be the fed that will at that time have the need to be rescued???and by whom???
Tx for your comments in advance