2008 Financial Crisis | INFJ Forum

2008 Financial Crisis

wolly.green

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Jul 20, 2016
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Does anyone know what The Federal Reserve did with all the mortgage backed securities they bought from the banks?

I know that during the crisis The Federal Reserve bailed out the banks by putting credit into their reserve accounts in exchange for mortgage backed-securities. And they paid this credit by creating it out of thin air. Further, I know that along with other quantitative easing (QE) measures, this lead to an increasing the money supply. And since QE keeps the value of the currency low, the countries stocks were more attractive to foreign investors.

So my question is, what happened to all these mortgages. Did they sell them to foreign investors? Or did they sell them back to Americans? Also, was The Fed aware of how lucrative the crisis would be? It seems to have only expanded their power even further. Its like they deliberately created it so they could steal assets (houses) from people that could not afford to pay their mortgages off?
 
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