One of the hot topics today is the federal debt load. It would be interesting to have a show about who really owes this debt and to whom it is owed. Thanks for the great work.

Under Al Capone the Mafia brought in Booze from Nantucket Island, Rum and Whiskey from Ireland. Then they moved to money trading at the Stock Market. Now they are still in money but we the people are still the Suckers. Since 1913.

Paddy's video is pretty close to the truth. Is it any wonder that the TEA Party is growing by leaps and bounds? The Federal Reserve, the Treasury, the President, and the Congress are ripping us off. It would be gratifying to see every one of them hanging from a tree after the fashion of Old Western movie justice.

Hi Nick
You're absolutely right that this is a simple video. This trade is just one of many that banks use to deploy money from the discount window. In many cases it will be a hedge against riskier trades that the banks might do with other instruments. Such as 30-year Treasuries, which at 4.5% will net 4% annually to the banks. Of course there is considerable interest rate risk there, so a smart trader will churn the portfolio to offset that risk.