Tuesday, November 25, 2008

Bailout Pledges More than $8 Trillion

Hot off the press, Part I. Term Asset-Backed Securities Loan Facility at $200B. Details per the WSJ:

Under the TALF, the Federal Reserve Bank of New York (FRBNY) will lend up to $200 billion on a non-recourse basis to holders of certain AAA-rated ABS backed by newly and recently originated consumer and small business loans.
Part II. The Fed to purchase up to $600 Billion in Mortgage Backed Securities (per the AP).

The Fed says it will purchase up to $100 billion in direct obligations from mortgage giants Fannie Mae and Freddie Mac as well as the Federal Home Loan Banks. It also will purchase another $500 billion in mortgage-backed securities, pools of mortgages that are bundled together and sold to investors.

This pushes the bailout "pledged" to date to over $8 Trillion. I understand it is NOT likely that all of these pledges made to date will be spent, but who thinks this is the last of them? Not me...

Source: Mish

1 comment:

  1. Most people don't realize how much money there is out there. During economic times like this, there is more money to be had than ever. Because of the bailouts and economy, lenders are bending over backwards to bail you out too. Believe it or not, there is people getting tons of cheap money nowdays to start businesses, buy homes, pay off debt, and more. Bailouts for Everyone