Foreign governments have lent $2.3 trillion to the US government, $831 billion to the US mortgage market through fannie mae and freddie mac.
The US Federal Reserve is in for $2.4 trillion, $1.2 trillion to the US mortgage market, the balance to the USG plus a $1 trillion dollar swap line for European Banks to harvest bad assets from the Baltic to the Adriatic.
The Federal Reserve Chairman is confused about whether the free money is working to rescue the US mortgage market.
The good news is that 15% of homes in the US are owned so $2.5 trillion of collateral is firmly accounted for.
The bad news is that the negative equity in US real estate markets range from $2-$4 trillion, borrowers owing more than the homes are worth. The mortgage relief program is negligible.
Where is the ammunition for the next round of the rescue?
Coal projects, $600 million US EX IM Guarantee, and the Defence Budget in India, $35 billion over four years?
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