[link to finance.yahoo.com (secure)]

This article tells people that Trump is now in control of the Fed, but that's not how what just happened works.

This means that because the Fed isn't allowed to directly buy those securities they are using a loophole to allow the Treasury to do it. And where does the Treasury get its money from.....?

The Fed. This is allowing the government to directly take on these assets, which are depreciating and on the verge of deleveraging. It is allowing overleveraged funds to make the government the new bagholder of their assets which are about to nuke to zero.

This is actually going to be the most brazen act of Wall St theft from Americans yet. It makes sense that Trump would ok this. At the moment GDP is what you all use to measure the economy, and financial services contribute bigly to your GDP. So if Trump let's Wall St take the hit, then goodbye American economy. He understands that they can't be allowed to go down, and the American government can take the hit. That's what they're there for in his eyes. The Fed can print whatever sum they ask for, it just goes onto the tab (National Debt). You need a strong economy to try pay the tab so you gotta save the elements of the economy that are making it strong, Wall St.

To repeat, what this actually means is this: This is going to allow Wall St to transfer ownership of securities to the American government. Those securities haven't been liquidated yet because the Fed has been lending these firms the money to stop liquidation (margin calls, in the form of repo market loans). This will effectively stop the repo market crisis. But it will mean the immediate liquidation of those positions. (unless the government keeps printing more money to continue to meet the margin calls, while printing enough money to boost the markets back up to the precious levels where these would be back in the money and able to be sold, which at that point it's cheaper for the government to just take the hit).

Wall St are about to be saved at the expense of the taxpayer to the tune of a few trillions dollars.