AIG Becomes the Fed’s Vehicle to Buy Toxic Assets [View article]
If you like this, you'll love the next phase of the Fed's quant easing strategy. All the Fed has to do is make new loans to insolvent commercial banks with the stipulation that they buy Treasury bonds (funding the fiscal stimulus) and hold those bonds as loan collateral with the Fed. Presto! The economy is stimulated and we get the "crowding out" effect even with record low bond yields.
AIG Becomes the Fed’s Vehicle to Buy Toxic Assets [View article]