The FRS remits about 80% of its earnings each year to the US Treasury. The remaining 20% covers expenses and dividends to stockholders.

If the FRS loses money on its purchases of debt and/or equity (MBS), that will mean less, or no, revenue to the UST from those operations.

The point here is, Congress WILL keep on spending and to make up the losses in FRS income, the UST will have to issue more bonds or taxes will try to be raised.

So, basically, the taxpayer is funding the FRS largess to its owners .... the banks..... via QE, etc..

Also, am not sure the stock market appreciates the fact that the owners or members of the FRS may be comparable to HM in the 30s. That is, some guaranteed income. Just an idea. Think I will be watching the bank stocks to see if I can pick up the scent.

realize there are 2 conflicting thoughts here....but, if not, what would be the fun????

have never seen a bank income statement that shows dividends on FRS stock owned. Yet, there should be. Easy way to tell who the FRS owners are (and I mean "the" stock.).

This may be all foolishness. But, never can tell.....