Well, Hank Paulson has the two GSEs that support the entire U.S. mortgage market about to blow up, but he's apparently not doing anything about it this weekend. But who are we to ask Paulson to work on a summer weekend?
Not that there's much he can do, except start shoveling taxpayer dollars into the black hole of fraudulent mortgages on fantasy-appraised houses. And the first multi-billion-dollar band-aid will be far from the last. He can't make the bondholders take a haircut, or his masters in China will punish him severely. He can't wipe out the preferred holders, because the preferred holders include hundreds or thousands of U.S. banks that would collapse.
In fact, "nothing" is exactly what Paulson should be doing. The Chinese sold us hundreds of billions of dollars of cheap crap that we didn't need, then invested the proceeds in Fannie and Freddie bonds that explicitly were not backed by the government. If those bonds go bad, well, that's exactly what China deserves. F them for not reading the prospectus.
Hey Hank, why don't you go on a long fishing trip deep into the woods where you'll be out of contact.