The Fed has resorted to new extremes in this financial crisis by selling off and lending its good assets, U.S. Treasuries, in exchange for toxic waste. The result: the Federal Reserve's balance sheet has been completely restructured -- including innovative off-balance-sheet hocus-pocus -- and looks like it’s headed for exhaustion. As the government’s primary tool for stabilizing the U.S. banking system, the Fed is now in dire need of a new source of lending to bail out other troubled banks. But can they rescue them all? In this tumultuous environment, monitoring the status of your personal wealth and the institutions that hold it is crucial.
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