Comment by gfodor

I don't understand this point of view, sorry Warren. The fed is generating revenue for the government in a certain sense, yes, but saying it is a successful hedge fund is like me saying that if I hold a bunch of bonds in my portfolio throwing off some interest that is a successful hedge fund. The entire question is what are they going to be able to sell those bonds back to the market for. If they end up having to sell them at a massive loss, which is likely, then all that revenue they've been throwing off in interest better offset those losses. I might have this wrong but it seems to be very odd to characterize the fed's QE programs as a success when it is literally an experiment in progress.