In the below video from a recent Dialogue with the Fed, Vice President and Economist Stephen Williamson of the St. Louis Fed discussed the types of assets the Fed held both before and after the Great Recession and showed how much of each asset the Fed now holds.
Per the video, MBS: "The underlying assets are private, it's not government debt." "It's safe stuff, nothing risky about it."
ReplyDeleteIt would be interesting to know more about what comprises MBS. One would suspect when purchased it was not mark to market at that point in time. Are the MBS' able to be sold for what they are valued at originally? How can he state "nothing risky about it"? In the future does the Fed purchase student loans, auto loans, ETF's? Are they effectively a sovereign hedge fund with the ability to print unlimited monetary quantity's?
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