> So the obvious and sensible thing to do is have the government lend money to cover the time until the bonds mature, in addition to using the FDIC's money which did not come from public funds.
The cost of the loans should be in the same ballpark as the losses on the long term bonds.
twblalock|3 years ago
That’s great, that means it’s zero, because there is no loss of principal on bonds held to maturity!
xorfish|3 years ago
Selling the bonds now at their current valuation or taking on debt and hold them to maturity lead to roughly equivalent outcomes.
The MtM losses are real.
unknown|3 years ago
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