I honestly do not understand why the market is up on this. Seems to me it’s a lose, lose type of smoke and mirrors scheme. Take a bad debt package and re package it as bad debit package. UH? Same old problem with the same old packaging just with a pretty ribbon on it. Still going to cost mega bucks! Can you say INFLATION!
It looks like the private "partners" will be able to purchase packages of bad debt at something like 1/12th of whatever value is eventually agreed upon, with taxpayers on the hook for the rest.
So PPIP is issuing a trillion in debt to finance this. Where is that money going to come from? Is the Fed going to print money to purchase PPIP paper? That's what it sounds like to me.