Caveat Emptor

Quick macro question: with QE 1&2, central banks purchased hundreds of billions of dollars of troubled/shitty mortgage bonds to push down long rates and stimulate lending. Who wants to buy the risky bonds that toppled Bear, Lehman, etc. now? I realize this unwinding is unprecedented, but Christ, it seems like a huge assumption that shifting the risk from public back to private will not cause any aftershocks of the original problem (shitty RE bonds).

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