socialist tim

How to Spend $700B and Actually Solve the Problem

riiiight. And the foreign bondholders, and foreign Treasury holders are going to take their lumps AND buy yet more treasuries.

How about the Fed and Treasury explain truthfully that they are going to buy up MBS, CDO's et al. Try and find the good the bad and the ugly. Resell the good, keep the bad, and let the ugly blow up on their own turf. They will buy and sell up to 700billion dollars worth rotating them until they get through the mess.

In return foreign holders won't dump Treasuries or other Bonds, sending the US into a massive depression instead of a very deep recession.