On Mar 17, 2008, at 12:49 AM, Ian Rogers wrote:
> And I am assuming this is an open-ended invitation from for the Fed
> to investment banks to restate the securitization machine, and that
> they will buy all and any piece of asset-backed security the market
> can now dish up.
I think the David Rosenberg piece I forwarded is right - they Fed will not want to take on much risk, but they will knock heads together, separating good from bad, and forcing writeoffs and mergers. I don't see how they're going to get out of this, though, without spending some serious federal money. What's another trillion on top of the 3-5 trillion we're spending on the Iraq war anyway?