Reply #24: "I think"

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What you and I think doesn't matter. The fact is this market will be created. The FDIC will oversee the value of these assets (mortgage backed securities.) Private equity plus the FDIC/Treasury will be involved in purchasing these assets.

This seems to be reasonable. The Treasury is accepting a lot of risk, but it's a lower level of risk than nationalization would bring yet everybody here is excited about that idea.

Edited to add: CDS are not in this program.

The Treasury Department Says:

Through this new program, non-recourse loans will be made available to investors to fund purchases of legacy securitization assets. Eligible assets are expected to include certain non-agency residential mortgage backed securities (RMBS) that were originally rated AAA and outstanding commercial mortgage-backed securities (CMBS) and asset-backed securities (ABS) that are rated AAA.