GSE Support But No Guarantee: Treasury is Prepared to Flee at Xmas ‘12 B

Today's comedy has had the side effect of smoking out one of Treasury's key contingencies. By steadfastly avoiding any mention of support for Agency Debt itself and only stressing their time-limited support for the Enterprises, Geithner's crew is signaling that they have created an option to GSE-ize agencies down the road.

Timmy is anticipating the action of just walking away from this whole mess exactly 6 weeks after the next presidential election. You have been warned.