Two questions regarding QE3

Economics Economics Questions
1

  1. Who exactly will the money be lent to? Can anyone provide specific examples?

  2. Are these bonds ever going to be paid back? If so, when?

Thanks!

2

My newb knowledge tells me it’s buying mortgage-backed securities bought from banks. See Murphy on the issue:

3

Thanks for the vid, though it still didn’t go over the full transaction process. Every source explains that the Fed will be issuing ‘bonds’ to banks that hold mortage debt, but the information goes no further. Who the Fed will be buying bonds from, and for how long they will be holding onto the debt? At what interest is this debt to be paid back? Does it even matter to the Fed if they never get paid back and just write it off? I mean, it’s not like the money was ever really there in the first place so it’s no loss to them.