Why is the Fed's plan good? Here's why. We'll know, by Monday, with the results of the tender if it is working. We know the academics on the Fed, are desperately trying to be sexy. So on Monday, we'll know how they look with their clothes off. And it may not be pretty.
So how is this plan good? Because it will force the Fed to come back to cut the rates they needed to cut in the first place. Short term rates are still too high, for housing to be repaired, and the Fed has been given the benefit of the doubt until we get the results.
So if it fails, that is "sexy." The Fed will have to quit being cute, and start addressing problems more forcibly, instead of with the "cute" gradualism they have adopted. They should of learned from Mr. Greenspan. At least we know how he looked with his clothes off.
But why Jessica Simpson? Because she's ditching her wholesome image for a nude role in a movie. And what works on Hollywood, doesn't work on Wall Street.
So the Fed puts their clothes back on. That's something the market will cheer!