ok i'm not dumb when it comes to the market, but i'm not Warren Buffet either. i just have some questions about today. and since we have 2000+ people in here then maybe someone could explain things to me.
ok the fed is going to lend $200B to banks, and take mortgage securities as collateral for 28 days. (then later they came out, and said that, they might be willing to do this again) so what happens if the banks can't pay the fed bank it the 28 day period. does the fed take control of the mortgage securities
or are the bank going to be smart this time about who they lend money to; meaning low risk people, so they are sure to pay the fed back?
which in return means that people like myself who pay back the money they owe have to pay a higher interest rate, to cover the banks pervious losses?
which would cause me not to borrow the money in the first place.
thanks for the help.