If this turns out to be true, it is really gonna tick off Fox News, Rush Limbaugh, Glenn Beck and others of that ilk (how sad it is that there are enough of them to form a “ilk”):
Fed Makes Billions
Fed officials compared the fees and interests that were part of the loan programs meant to inject liquidity into the market and how much the central bank would have received if that money had been invested in three-month Treasury bills. In total, the Fed made around $19 billion from interest and fees it charged to institutions that wanted access to the funds. If it would have invested the same amount in T-bills, the Fed would have earned around $5 billion, meaning it has a $14 billion profit since August 2007. Combined with a report in the New York Times that the government has made around a $4 billion profit from eight of the biggest banks that have fully repaid their obligations, it raises the possibility that the government might be able to come out ahead from its unprecedented involvement in the economy.
Read original story in The Financial Times | Monday, 31 Aug 2009
This summary comes from Slatest, the new Slate Magazine daily email newsletter.
NOTE: For those to whom the headline makes no sense: it was a running joke in the enlightened blogosphere during the Presidential campaign that no matter what happened, for the media which served residents of the non-reality community, it was always “good news for the McCain Campaign.”