fraught friday, page-9

BI, for the fed or us govvy to take over or underwrite the monolines mortgage backed insurances would mean writing a huge cheque, I imagine.. think of what that would do to usd and inflation.. and besides, for the citadel of capitalism to socialise mortgage debt insurances.. major values conflict there, tho they'll do it eventually I think.. or something similar.. given that the banks are quasigovt organisations anyway, since they are backed by the fed with us dollars, and that us govt is already askng a banking consortium to underwrite the monolines.. thats not such a big step away from direct us govt action.. but it does provide a face saving figleaf.. its the banks saving the monolines, not the govt... its the market sorting things out, not the govt..