Sunday, August 12, 2012

We The Taxpayer Made a Profit on Mortgage Debt

Will miracles never cease?  In a surprising announcement, the Treasury Department recently reported a 25 billion dollar profit on the mortgage bonds purchased at the height of the financial meltdown.  Treasury had spent $225 billion on purchase over 16 months before it began selling the securities last year.  While this may be bad news for purists, it would suggest the government can unwind a rescue package without roiling the markets.  I think that no matter where your philosophy is on this matter, we all pray we do not have to ever see this tool being used again in the future.  However, it appears to be another arrow in the quiver should the need arise.  Now if Fannie and Freddie can ever get us paid back that would be even better news!

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