Thursday, June 11, 2009

Fed lost $5.3 Billions

Associated Press
10:17 AM PDT, June 10, 2009

WASHINGTON -- The Federal Reserve lost $5.25 billion in the first quarter on the securities it acquired with last year's bailouts of Bear Stearns and insurer American International Group Inc., according to a report issued Wednesday.

The loss on the holdings, which include mortgage-backed securities, reflected a decline in their value as the recession carried over into the first three months of this year. The cumulative loss of the Bear and AIG holdings come to $16.46 billion since they were taken over last year.
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A Regional Central Banker Blows the Whistle

Gary North / LewRockwell.com | June 10, 2009

"In the long run, we are all dead but our children will be left to pick up the tab." ~ Thomas Hoenig, Federal Reserve Bank of Kansas City

Thomas Hoenig is the president of the Federal Reserve Bank of Kansas City. In a recent speech, he laid out a scenario for what the Federal Reserve ought to do and what the U.S. government ought to do, and what will happen if they refuse. You can read it here.