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|User Info||Geithner, Kneale, and The Impending Credit Collapse; entered at 2009-09-10 22:53:24|
Registered: 2009-07-05 California
Fannie and Freddie are in receivership. Is there anything preventing the Treasury from using its revolving tarp credit card to pay off agency debt? I assumed that if the Fed is buying a trillion plus in agency debt that this implied guarantee will be enforced. Also, Bernanke has testified that the Fed is able to buy anything that in its judegement is money good. Whether this is a bastardization of the law is beside the point. They are doing it, and I think it is non agency paper that Kohn is concerned about.