The Fed bought $300 billion or so and it widely believed Fed purchases of $1.3 trillion of agency backed MBS went to the larger banks and these banks used the proceeds to purchase treasuries; they used checks from the Fed and counter signed them and gave them to Treasury. Now that this has effectively stopped, the salient question is who will buy going forward and over the next ten years?
U.S. Insolvency Is 'Greek to Me' [View article]