It's Called "Forgery"

... when you print the money to buy your own products. Or is it "money laundering"?

The Fed is on track to purchase $1.25 trillion of mortgage backed securities, and has said it plans to complete the purchases by the end of March. The purchases have helped to drive down mortgage interest rates, providing an important boost to housing and financial markets. When the Fed stops buying, mortgage rates could turn higher.

Now that the Federal government owns Fannie and Freddie outright, this is just printing money to cover your bills. If you or I did this in our basements, we'd be arrested.

From the comments on that article comes this gem:

The market value of the $1.25 trillion of CMO's was and now is is?

The cash flow from the $1.25 trillion of CMO's is?

The fine print liability in the CMO’s is?

The fees paid in buying the CMO or the bid and asked spread on the CMO's was?

Better get some answers here before a few fat cats have all the marbles and the FED has to close its doors and run for it.