The Federal Reserve Has Become The Mother Of All Junk Bond Funds

I love this graphic! It shows how bloated the Fed has become, holding all the crap assets that banks lost on. I’d love to see a “quality breakdown. Talk about a true JUNK bond fund. The Fed has become the mother of all JUNK Bond Funds. Maybe we can get Michael Milken out of retirement to run this pool of trash. It’s no wonder that the US Dollar is imploding on itself.

Tim Geithner is in China telling the Chinese Government that things are OK. He’s telling China we’re getting things under control and that the economy is finally starting to recover. China’s asking Tim the following:

“But Tim …..What about the $11 trillion in debt? ”
“But Tim…. What about that big green mass on the Fed’s balance sheet?”
“But Tim….. How are you going to start to unload these bad assets. Who’s going to buy these?”
“But Tim…..What about the 9% unemployment rate?”
“But Tim…..The US Dollar is continuing to drop…..we’re losing money on our US bond holdings”
“But Tim…..The US Banks are still not loaning money”

Tim’s best response is: “Trust US”.

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