Wednesday, October 21, 2009

Can't beat those tangible assets

Deserted shopping mall bleak symbol of Fed bailout | Reuters: "The Fed finds itself in the unusual situation of being an Oklahoma City landlord after it lent JPMorgan Chase $29 billion to buy Bear Stearns last year.

That money was secured by a portfolio of Bear assets. Crossroads Mall is the only bricks and mortar acquired through bailout. The remaining billions are tied up in invisible securities spread across hundreds, if not thousands, of properties.

It is hard to be precise because the Fed has not published specifics on what it now owns. The only reason that Crossroads Mall has surfaced is that it went into foreclosure in April."

There is an oil well in the parking lot, but the Fed doesn't own the mineral rights. Other than the fact that the property seems to be worthless, we taxpayers got a heck of a deal.

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