Wednesday, August 18, 2010

Foreclosed On—By the U.S.

What our government does to one it does to all of us. Do not be fooled in thinking that your government is working in your interest because it is not. The government has become way too large for anyone to keep track of and those who have been seated for more than two terms in office should be voted out and new people should be voted in with hope for survival.

It is an unprecedented test for the most powerful of 12 regional branches of the Federal Reserve System. In its 96-year history, the Fed hasn't made or controlled loans to U.S. citizens and businesses outside of banking since the 1930s, when it was done on a much smaller scale. Now, under the watchful eye of Congress, the New York Fed must recoup a $29 billion loan secured by the Bear assets.

"For the Fed to come in and foreclose on properties puts it at some reputational and political risk," said Vincent Reinhart, a former senior Fed staffer who is now an economist at the American Enterprise Institute. "If the Fed can't figure out how to recast the terms of these mortgages and work with borrowers—it's emblematic of the problems the government has had with other programs over the last year and a half," he added.

in reference to: Foreclosed On—By the U.S. - (view on Google Sidewiki)

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