
110: Heather McGhee - My Favorite Is Back
The Al Franken Podcast
00:00
The Fed's Bailout of Treasury Bonds
The U.S. government bought treasury bonds at a point when interest rates were low and they were getting good yield on the bond. But not for long term because we have inflation and then of course the Fed raised rates. And even though it did look like a good bet, you don't put 117 billion of your $211 billion in asset in one type of security. You just don't do that. It is insane. The bailout actually consists of the US government buying those bonds from them. They can either hold them until they mature for 20 years, basically at a loss or find some up, sell them now at a loss.
Transcript
Play full episode