posted on Apr, 11 2009 @ 07:27 PM
Originally posted by freeordie
I was asked this question but I couldn't provide an answer could you guys help me out?
Say you have a Mortgage and a government loan. What would happen to your loans if the FED fails and the dollar goes by by?
FreddieMac & FannieMae, both GSE's are taken over by the US Treasury...
and have no obligation to the 'Fed' (Federal Reserve Banks)...
so the 'Fed' has no mortgate connections or loan connections-
the 'Fed' only puts (albiet temporarily) toxic assets like some mortgages & loans on their 'balance sheets
' fully expecting payment when
the paper reaches Maturity...
the 'Fed' is owed $100s of Billion$ or even Trillion$ for the monies they've allowed the US Treasury to print during the last two calendar years
So... the 'Fed' cannot Fail... about all they could experience is a severe
devaluation of their 'wealth' as the dollar decreases in value... but I'm certain the 'Fed' manipulators have that contingency figured out
and will have converted all their reserve-note holdings into 'tangible assets'
(think gold/oil/minerals/land/super-bowl stadiums, etc)
long before the crash happens