By Mike Shedlock, includes “… I doubt it will ever make it out of committee. I also think the Fed would weigh in negatively on such a scheme. Let's assume I am wrong on both counts. If they do pass such a scheme, bear in mind that it is for a limited situation, at least for now. Then it is nearly guaranteed to blow up in proportion to the amount of leverage used. If so, it's highly unlikely the program would be expanded to cover public pensions. I do not think this is the final scheme, for reasons stated, but it is the opening salvo. Expect to see even more 'creative' ideas when public union pensions such as CALPers blows sky high.”