http://finance.yahoo.com/news/European-debt-woes-could-hurt-rb-618440531.html?x=0&sec=topStories&pos=2&asset=&ccode=
Read that last highlighted paragraph and then remember Freddie Mac, which as a taxpaying citizen of the United States you are responsible for. Where do you think the FED is going to dump that 1.4 trillion worth of crap at?
The Federal Reserve is closely monitoring financial turbulence in Europe as it could have repercussions for the United States and its markets, policymakers at the central bank said on Thursday.
Thomas Hoenig, president of the Kansas City Fed, said the U.S. government should not neglect to address its own indebtedness, which he said could increase pressure on the central bank to keep rates low to "monetize" deficits.
Hoenig and Lacker, considered among the more hawkish members of the Fed, argued that the central bank should strive to "normalize" its balance sheet by selling some of the mortgage-backed debt acquired during the financial crisis.
In response to the most severe financial crisis since the Great Depression, the Fed not only cut interest rates effectively to zero but also purchased over $1.4 trillion in mortgage-backed securities.
"It makes sense...to begin normalizing our balance sheet in advance of raising rates," Lacker told the Virginia International Investors Forum. "Normalizing our balance sheet means reducing its size, (and) also returning to our traditional Treasury-only asset holdings."
