As the US Federal Reserve continues with its stimulus program, it might be the Fed itself that's next in line for a bailout. The Fed's bond-buying binge could put the central bank's finances at risk if interest rates were to rise sharply, critics warn. The Fed's balance sheet would swell to more than $4 trillion and as the number gets bigger, the risks also rise. The Fed stands to lose a lot of money, and by a lot of money, I mean hundreds of billions of dollars, said Rep. Mick Mulvaney (R-S.C.), who has raised those concerns with Fed Chairman Ben S. Bernanke. It is not hyperbole to suggest the next big bailout could be of the Federal Reserve. (LA Times)
I have been a senior resources analyst following the fortunes of the mining and energy sectors for the past 25 years - previously working with stockbroker Intersuisse and financial group Fat Prophets. I am also Executive Director, Mining & Metals...
No areas of expertise
Thanks for sharing this Gav. Here's the full article for those interested: http://www.latimes.com/business/la-fi-fed-assets-20131029,0,5018539.story#axzz2jKYqJb00