I am of a similar opinion, but thought to focus on consumer debt. Using the nothing money to support the mortgages upon which the MBSs are based would do more to ward off the financial crisis than asuming the obligations of insurance without reserves. This is obviously due to the fact that you are putting resources on the proper end of leverage created by the idiots/crooks.

Thus the taxpayers would be paying WITH leverage rahter than paying OFF leverage. Don't like the idea of taxpayers paying anything, but if we must lets do it with a bit of thought.

Banking greed and political rot is a bad combination.