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What I'm trying to say is that the Federal Reserve is not owned by the US government and instead owned by all of the chartered banks. So having 1B of mortgage
by VirusNewbie 5y ago
What I'm trying to say is that the Federal Reserve is not owned by the US government and instead owned by all of the chartered banks. So having 1B of mortgage backed securities go from being owned by JPMorgan to 'The Federal Reserve', just means it's more evenly distributed across all banks, not that 'the government' now owns the debt.
- gruez 5y ago> So having 1B of mortgage backed securities go from being owned by JPMorgan to 'The Federal Reserve', just means it's more evenly distributed across all banks, not that 'the government' now owns the debt. What's the practical difference between: 1. federal government owns mortgage backed securities 2. an agency controlled by the federal government owns mortgage backed securities Please explain in detail, without resorting to "the government does/doesn't own it".
- VirusNewbie 5y agoIf the government owns it, the value of the mortgage backed security it owns would affect its balance sheet. If the banks own it, the banks balance sheets are affected and not the government. I'm unsure of the confusion though?