Global Investing

Main menu:

Currency Converter


Site search

Categories

  • Subscribe


    Feed
    addtomyyahoo4
    Subscribe in NewsGator Online
    Add to My AOL
    Subscribe in Rojo
    Subscribe with Bloglines
    Add to netvibes
    Add to Google

    Add International Investing to Newsburst from CNET News.com
    Add to SiteShuffle
    Subscribe in FeedLounge
    Subscribe in Bloglines
    Bitty Browser
    Subscribe in NewsAlloy
  • Archive



    Would you invest $1,500 in the US bank sector?

    Me either. 

    In December, the Fed had $775B worth of Treasury securities. That stock will soon have dwindled to $300B, give or take. The difference, about $475B, represents an investment by the central bank in risky assets of the US financial sector. $475B is an extraordinary sum of money. It is as if the Fed borrowed more than $1500 from every man, woman, and child in the United States, and invested that money on our behalf in Wall Street banks that private financiers were afraid to touch. For bearing all this risk, if things work out well, taxpayers will earn about what they would have earned investing in safe government bonds.

    …If the Fed were to blow through the rest of its current stock of Treasuries, it would have invested more than $2500 for every man, woman, and child in America. Public investment in the financial sector would have exceeded the direct costs to date of the Iraq War by a wide margin.


    Share this article: del.icio.us | Digg it | Netscape | reddit | Yahoo MyWeb |

    Write a comment