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To: ahhaha who wrote (404334)	5/8/2010 10:34:29 AM
From: carranza2	9 Recommendations Read Replies (1) \| Respond to of 436258

Indeed, the whole financial crisis orbits around the perceived and actual difference. FED buys MBS toxics which are only toxic because they impair their marketability due to the balance sheet state of their holders and due to the detestable condition of the economy. FED relieves the holders by direct purchase. This adds and subtracts from source and use base, but the net of it is zilch, zed, since eventually toxic will turn into nontoxic. It is real property. It only has the problem of an inability of the indirect of final holder to service. That will be rsolved. It is REAL property. Then FED makes a killing for Treasury. That's one of the stupidest things I have read about the crisis. You are the world's premier [self-proclaimed] expert on this? It is NOT real property. It is rotten paper on over-valued property. The terms of the paper stay the same, the value of the property is set by market forces. Do you have any earthly idea what paper was taken in by the Fed and what property it secured? I don't either. I can guess, reasonably, that it was the most vulnerable paper on the stinkiest properties. And you think, on the basis of no information at all, that this is going to produce a fortune for the Treasury? You think the Fed or the Treasury is going to foreclose on these rotten properties to produce a fortune after having bought them at prices designed to prop up the banks? What are you smoking?