Federal Reserve as Pawn Shop of Last Resort

[acne_is_...@hotmail.com]

I woke up with a brainstorm (or brain fart, if turned sideways). With
this poor showing:

http://www.newyorkfed.org/markets/omo/dmm/temp.cfm

it is apparent there is no market for CDOs. Well, how about the Fed
advancing 20 cents on the dollar to owners of CDOs, SIVs, etc., in
return for these vehicles. Assign an independent agency the job of
collecting mortgage payments. A year later, let the original owners
buy these back at cost + discount rate + processing fees. If they
don't buy them back, the Fed auctions off the packages to high-wealth
bottom feeders like Carl Icahn, Kirk Kerkorian, etc. This is a great
solution to short term liquidity problems. Worthy enough to get me a
Nobel Prize in economics. Ahem.

[Dr Tormento]

"acne_is_...@hotmail.com" <acne_is_...@hotmail.com> wrote in
news:1194555665.0...@t8g2000prg.googlegroups.com:

>
> it is apparent there is no market for CDOs. Well, how about the Fed
> advancing 20 cents on the dollar to owners of CDOs, SIVs, etc.,

It's not the Fed's job to bail out the idiots who bought them.

[Bill<NOSPAM>Gross@gmail.ca]

> It's not the Fed's job to bail out the idiots who bought them.

Smile when you say that, and are you refering to the ids that bought
the fed, the gov't or the politicians that
supp rep't the people?