Yes I agree they do have to raise the capital to buy them and I don’t know how they will get it. However not having a restriction is a first step wouldn’t you agree?
Not that it matters in the long run. Wouldn’t you say that if the secondary market locked up somehow, that our favorite federal government would step in? Don’t they already take junk debt as collateral at the discount window? I heard the ECB has already taken on 90B worth of it as well….
If you are as jaded as I am I think you would agree that nothing happens in one fell swoop. In the long run one can look back and see several steps that occurred and it all pieces together quite nicely. Down the road when things get worse there will be other more desperate measures that the government will need to resort to. Larger plans get implemented in piecemeal manners. To me this is one of them.
