What this means

Several Attny "G's" are acting like they care about this credit crises and are pursuing the bankers and brokers that sluffed off this garbage to "unsuspecting" investors.

Truth is the pensions and what all that got caught (Warren Buffet is supposedly to have said that it is not until the tide goes out that you can see who is swimming naked) with their trunks down are now applying pressure and crying foul.

I thought the over regulated Oaxly sar whatever was supposed to end all of Wall Street shenanigans?

We digress here. The point is these firms have no money to buy back these securities. They are hemorrhaging billions in losses. They have no choice but to buy this toxic stuff back and beg at the reserve window for capital while using this junk as collateral.
Now how is this going to look on the balance sheet? 1 mil. in toxic waste that cannot be peddled so it really is not worth 1 mil. more like 400,000. Now I magically go to the feds place it with them at a collateral price of 1 mil. get treasuries of 1 mil. and poof my portfolio is now triple grade AAA investments.

Nice gig if you can get it.

Now the sad part is that who pays for this? That's right you and I. Now the only way they can take this from me without me screaming is to tax me. But since I am already taxed to death and will revolt with more taxes, they simply go to the auction blocks and offer this debt to anyone that will take it. Now all I am responsible for is to make sure the interest is paid. Since I will never need to pay the principle. Because when the principle is due, I simply have the treasury sell more debt. Kind of like we do roll out each and every time debt comes due.

Now if anyone can explain to me with a straight face how this trickery is not 1) Very bad for the dollar 2) Very bad for inflation. I am listening. What we are doing now is going to cost several generations.