If this ONLY amounts to the Fed lending money and taking their toxic collateral, it will only cost us about $2trillion in inflation (that's spread across EVERYONE). This is the best possible outcome.
If the Taxpayer actually has to make up the difference between "mark to market" and "mark to model", it'll cost us $2-$3trillion directly...every TAXPAYER, which is less than 1/2 the population.
Thats a little too big too hide even for too big to fail, LOL. They will become nationalized, the hatchet people will come in and axe management and missapropriations, the housing market will bottom (2010) and the company will be privatized once again. The taxpayer will eat some things in between and penny one is too much! However, it will not be 2-3 trillion, although you can blame the socialist party for creating this real-estate bubble in the first place and the pubbies for there lack of oversight between 2001-2006.