• Fed Paid Banks $38.5 Billion in Interest on “Reserves” in 2018 (WS)
Where did the money come from ( $38.5 Billion )?
OKAY, I get it. From the loans it bought. from the banks. ie. MBS
Interest income: $112.3 billion. This is the amount the Fed received in interest payments on the securities it holds, including those acquired as part of QE: Treasury securities, mortgage-backed securities (MBS), and government-sponsored enterprise (GSE) debt securities (the latter is now almost nothing in the grander scheme of things, just $2.4 billion, and down from $169 billion peak in 2010).
Normally, these line items would be ironic because, obviously, the Fed doesn’t need to borrow money – it creates money when it needs some – and therefore, it wouldn’t need to pay interest. But these are not normal times.
The $4.6 billion: This is what the Fed paid in interest expense on securities that it sold under agreement to repurchase. This too came out of taxpayer’s pocket.
The total the Fed sent to banks and others in interest that came out of taxpayers’ pocket amounted to a combined wealth transfer in 2018 of $43.1 billion.
There are 94 comment/questions. I’m still confused. Is that added to the deficit? Only a banker can follow the money.
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” …. because what has really changed is not just the number of homeless people, but who these homeless people are….. some are Uber drivers who took out too many loans to buy their car to do their job.”
How poor can the poor get.
Check out these homeless drivers in the philippines. Many of them sleep in their “sidecar motorcycle in the philippines” to be able to pick up their favorite working customer before daylight.
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