It could be so “easy” …
We understand, that the FED is fighting to keep the air in the stock market. Because the economy might not be able to withstand the double whammy HOUSING and EQUITIES down the drain.
If I get the Barron’s story on MBIA right (pls. read here) , the problem could be payable as 250 mln$/year are being mentioned for MBIA.
WHY does the FED not just guaranty the bond insurers??? Immediately the pressure is off the markets and no more talk about AAA, yes or no … AT LEAST, they would win precious time, doing this.
Interestingly, prices of Bond insurers already recover and today there is a meeting with the N.Y. regulator to talk about “options”
C’mon Ben … no helicopter, no rate cuts, just a small guaranty ??? What about this???