that is really bad mass politics
the people see that as simply a higher cost of living
so what can the fed do to trigger inflationary expectations ??
announce lower interest rate peg like targets
right across the treasury maturity range
no change for 5 years
and buy up 3 trillion in treasury notes and bonds
fund
fanny and freddie
in a program to buy up all underwater mortgages
and make adjustments
restructure the household obligations
by fractioning off the necessary chunk
into a new seperate note and subordinate it to the note issued for the balance
knowing debtors can't be rewarded at tax payer expense
securitize the over hanging hunk
as zero payment low rate internally compounding loans
with a 30 year out one pay balloon
