Sorry, the money either comes from foreign governments/institutions etc in the form of loans to the Fed(or another way of looking at it, foreigners buy USD bonds which the Fed issues) but in this case the banks bad debts will be "monetized".
So in this case, instead of foreign parties buying US bonds with cash, US banks are trading their toxic debt(with dubious valuations, and reducing!!) for bonds, ie cash. You can't "write down" cash, so this process will hopefully make the banks balance sheets more solid so they can survive.
The plan is basically for the US government to buy crap from the banks with cash, transferring the liability to the US taxpayer.......its criminal, non-constitutional and just wrong. Its justified however as the only solution to the problem created by Wall St bankers.
When the going was good, the profits were privatised, now the going is bad, the losses will be nationalized. Pretty soon(maybe already) people might begin asking, "Who's going to bail out the US government?".
This craziness probably explains the action of gold and silver in the last few days, the USD is losing is status as a "safe haven".
