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U.S. Department of the Treasury is Applauded for the Whopping $25 Billion Profit, and Questions Arise Regarding How the Money will be Spent(March 20, 2012)
New York, NY (PRWEB) March 20, 2012
RoadFish.com mens lifestyle and finance magazine celebrated the Treasury Dept.s recent announcement that it had completed selling the last of the $225 billion worth of mortgage-backed securities that it acquired back in 2008 and 2009. RoadFish.com acknowledged this as a victory for the U.S. Treasury, and a big win for U.S. taxpayers, and is curious to find out how the money is to be spent.
Reuters reported that the announcement of the U.S. Department of the Treasurys $25 billion profit from the sales of mortgage-backed securities was announced on Monday. The Treasury started purchasing the first of what ended up being $225 billion in MBS in 2008 as an attempt to keep the mortgage market afloat during a time when private investors were going under. The Treasury sold the last of its MBS for a grand total of $250 billion, leaving it with $25 billion in profit. Reuters quoted Treasury Assistant Secretary Mary Miller as stating, The successful sale of these securities marks another important milestone in the wind-down of the governments emergency financial crisis response efforts.
Jim Puzzanghera of The Los Angeles Times likewise reported that the Treasury purchased the bonds from Fannie Mae and Freddie Mac from 2008 through December 2009 as part of a government effort to venture into the U.S. financial system and keep the housing finance market buoyant during the financial crisis. Puzzanghera reported that the majority of the bonds, purchased by the Treasury in order to keep the mortgage markets money flow alive, were comprised of 30-year fixed-rate mortgages and were guaranteed by either Fannie or Freddie. The goal with the Treasurys purchase of the bonds was to guarantee money flow in that arena, which would enable banks to keep handing out loans to homebuyers in tough economical times.
RoadFish.coms Senior staff writer is quoted as saying, I was a little skeptical a few years ago when I first heard about the U.S. Treasury and the federal governments involvement with the purchase of these bonds. But I am very happy to admit that my fears were in vain, and that Im so pleased that their strategy was so effective.
The above LA Times article states that the Treasury started selling the MSB in March 2011, and continued to sell the rest of the $225 billion in bonds slowly to steer clear of stepping on the mortgage markets toes and possibly harming it. The article includes a quote from Miller stating, This program helped support the housing market during a critical moment for our nations economy and delivered a substantial profit for taxpayers.
The U.S. Department of the Treasury was established in 1789 by an Act of Congress and is responsible for managing the federal governments revenue. The Treasury is in charge of printing and minting paper currency and coins, printing postage stamps, collecting federal taxes, supervising national banks, paying U.S. bills, and managing U.S. debt.
RoadFish.com congratulates the Treasury on its remarkable profit, and wonders how the funds will be used. RoadFish.coms Senior staff writer stated, I am curious what the federal government is going to do with such a massive profit? Personally, I think they should take a page out of the taxpayers books and do what Im sure were all going to do with our tax returns, which is pay down debt and work to increase our credit score and credibility.
Reuters reported in the above-mentioned article that the sales of the Treasurys $225 billion bonds was done smoothly, with little to no disruption within the market.
RoadFish.com is an online men's lifestyle and finance magazine targeted toward men in their 30s and 40s that have already attained a moderate level of success in life, and are striving toward more. It goes over current events of interest to this group, such things as exciting adventures, making money, consumer interests, finance, and dating tips, as well as ways to make more and save more money. It is a publication owned by Purpose Inc.
Read the full story at http://www.prweb.com/releases/US-Treasury-25-billion/profit-mortgage-bonds/prweb9305060.htm.
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