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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (76576)	3/20/2008 7:15:25 PM
From: Handlarz Piotrek	Read Replies (3) \| Respond to of 116555

I think it might go in 4 steps: 1. Treasury issues let's say 1 trillion in new bonds. 2. The Fed purchases those bonds from the Treasury. 3. The Fed gives out the Treasuries in exchange for mortgage collateral. 4. The Fed puts the mortgage collateral in the shredder. In the end everybody wins: a) Federal government can go on a hiring and construction spree b) Banks get rid of their bad loans. c) The debtors get their debts cleared Think that it can't happen ? It is already happening, steps 1 to 3, step #4 is just a matter of time.