OK I was giving him the benefit of the doubt when, in his speech in Des Moines, Rand Paul said “assets” when he meant “equity.” But then for a written piece for Breitbart–which appeared 4 days after the speech, and so presumably Paul and his staff had seen how people on Bloomberg etc. pounced on his misstatement in the speech–Paul (or his aides) wrote this:
The Fed has $4.5 trillion in liabilities and only 57 billion dollars in equity. It is leveraged at 80:1, nearly three times greater than Lehman Brothers when it failed.
Nearly 40 percent of the Fed’s liabilities are said to be mortgage-backed securities – the question needs to be: How many are distressed home loans?
I’m pretty sure he meant to say 40 percent of the Fed’s *assets* are mortgage-backed securities…?