Fed uses accounting gimmick to wipe away losses.

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The Fed might be facing a loss on its bond holdings. That's no worry for those former Goldman Sachs boys, they'll just use an accounting gimmick and it goes away.

Quote:

Concerns that the Federal Reserve could suffer losses on its massive bond holdings may have driven the central bank to adopt a little-noticed accounting change with huge implications: it makes insolvency much less likely. The significant shift was tucked quietly into the Fed's weekly report on its balance sheet and phrased in such technical terms that it was not even reported by financial media when originally announced on Jan. 6. But the new rules have slowly begun to catch the attention of market analysts. Many are at once surprised that the Fed can set its own guidelines, and also relieved that the remote but dangerous possibility that the world's most powerful central bank might need to ask the U.S. Treasury or its member banks for money is now more likely to be averted. http://www.cnbc.com/id/41198789Also note that analysts were shocked and didn't know the Fed could do this. More proof that an Ivy League education isn't worth jack.