Gee, this is a surprise, banks are looking to buy each others’ mortgage backed securities, essentially swapping their own crap for someone else’s crap plus a 50+% subsidy.

For once, I find a Republican who has a clue

Spencer Bachus, the top Republican on the House financial services committee, vowed after being told of the plans by the FT to introduce legislation to stop financial institutions ”gaming the system to reap taxpayer-subsidized windfalls”.

Mr Bachus added it would mark ”a new level of absurdity” if financial institutions were ”colluding to swap assets at inflated prices using taxpayers’ dollars.”

I have to say, in reviewing Geithner’s history, I do not believe that this was an error, but rather something that he intended.

I believe Geithner is Wall Streets bitch, and that this is just another instance when he strapped on the knee pads.