Don't Expect the Fed to Sell "Assets" Any Time Soon
Heavy on the what-nots...
It's a risky move - now the Fed has to keep up a crap portfolio so it can drag its feet on unloading the crap assets it's been bequeathed throughout the financial crisis. Now if I were them, I'd call in those loans and tell the banks to take their crap back since everything is, you know, totally under control. If you can report billions in profits, you can swap cash for crap and call it a day. Of course, the Fed is enabler and the banks are raging easy money crackheads and that will not be changing any time soon.
The U.S. Federal Reserve does not expect to sell any of the billions of dollars worth of assets it bought to boost the economy in 2009 until it has started raising interest rates in a strong recovery, it said in its 2009 annual report released on Monday.
"The Federal Reserve currently does not anticipate that it will sell any of its securities holdings in the near term, at least until after policy tightening has gotten under way and the economy is clearly in a sustainable recovery," the Fed said.
Told you guys, with Janet Yellen installed where Don Kohn soon will not be the Fed is on a pretty pathetic trajectory. At least they're being honest about it.