[who_would_fardels_bear]

MBS's were never an investment.

They were a cover for a Ponzi scheme. The sooner they die the better.

In a saner world the Fed wouldn't invest any taxpayer money in such worthless paper, but they are a quasi-governmental agency after all so they are only capable of quasi-intelligent/honest behavior.

[Palmetto Patriot]

The sooner they die the better.

They will become the Undead.

Zombies.

The Fed will print fake money to pay them off with weak dollars.

[Alberta's Child]

Kudos to the Freeper (I wish I remembered his/her screen name) who predicted several years ago that toxic mortgages were basically AAA-rated investments even though they were nothing more than paper of questionable value backing tens of thousands of homes whose mortgages were in default.

He/she said something to this effect: "The investors who bought them will eventually be made whole, just as they would if they had bought U.S. Treasuries."

Nobody believed him on that long-forgotten thread ... but damn, he was right!