their assets (mortgage portfolio) and debts (incl. bonds held by BOC) unwind gradually as they mature, and let the private sector gradually pick up the job that's currently done by fannie and freddie. of course you could auction off the mortgage portfolio but the proceeds are expected to extinguish debts - don't forget that the us government is not getting a cent back on their equity or preferred equity before the debt holders get their money back.
don't see how one may unilaterally convert AAA government-backed debt into B private company debt as song seems to be concerned about... he is confusing the two sides of the balance sheet.
