To: Federal Reserve, Ben Bernanke
Consumer Debt
Tell Ben Bernanke that the Federal Reserve should buy under- water home mortgages and student debt from the Big Banks instead of toxic assets in its next round of Quantitative Easing.
Why is this important?
The Federal Reserve has been bailing out the banks by buying lots of toxic debt (derivatives, etc.) from the Big Banks to the tune of trillions and trillions of dollars. Why shouldn't it instead be buying up the mortgages of people about to be foreclosed on and students who hold huge debt but have no job?.The Fed can even make money on the deal by charging between 1%-5% interest since its own cost of money is only about .075 or so.