By fully monetizing it. What on earth? Alan's duty is to preserve the banking system and he has been letting folks gamble on their unrealized paper gains for further gains for quite some time. I can only surmise that the end game was planned all along . . every asset bubble that he has spawned is solvable by just simply printing more money. Any one of the individual participants in the speculative hyper-inflationary asset bubbles has the biggest bubble blower in their back pocket, as their underwriter.

Mr. Bush would surely not have needed adjustments to the capital gains tax rate if he expected a collapse of asset valuations, for that would make Mr. Bubbles into something other than a good team player.

The Savings and Loan clean up from the late 1980's and early 1990's made one thing clear to all home owners (oops I mean mortgage holders) that Mr. Bubbles will come to the rescue even if it means that the US dollar must be significantly devalued in the process.

Monetization what?

Go read this summary of "Debt and Delusion by Peter Warburton, 1999" so as to get a feel for the concept.

Then go read "The debasement of world currency: it is inflation, but not as we know it"
by Peter Warburton April 9, 2001

You can even go search on IMF (International Monetary Fund) and Monetization and see where it leads you.
There is one good little piece from the experience in Turkey that might be illuminating to some folks.

What might be a practical remedy? For starters one could simply say that wenever any paper gain is encumbered in any way in some other instrument then the paper gain must be immediately recognized as no longer just a paper gain, and claimed as a realized gain for tax purposes at the very least, and most certainly for treatment as a thing of value for which other encumbrances cannot overlap. I'll have to chew on that little phrase for a while to see if it covers all things like home equity loans on appreciated value or the hedge funds playing one document against another, and facilitated by bank loans, and whatever else crosses my mind.

The goal here is to find a description as clear as that that was made applicable to bank failure following the Great Crash and subsequent remedial legislation that prohibited the use of stocks as collateral fro loans to buy, among other thing, more stock. A pension trust fund that make fix forward promises based and present bubbled values and projections of further bubbling is so far out of kilter (based on the lessons of past on the principal cause of unsound banking practices) that we have got a nice glorious remake of financial collapse in the making.

It has been cooking for a while and we just keep finding a little more yeast to add to the bloat, even while it is in the cooker and the edges are getting toasty brown. The herniated loaf (the patient) is starting to resemble a mummified and hollowed out leper. All we need to do now is preserve it for posterity sake, with a little embalming fluid, for future generations to discover and examine.