Shocking, true. Here Comes The Light. Although the details are not known, how much transparency and regulation will exist, the actual Fed meeting is tomorrow. CNBC is reporting that the Fed is setting up a credit default swap auction.

Officials at the Federal Reserve plan to meet with top executives from two commodities exchanges in an effort to create a new marketplace for credit default swaps, one of the most important, controversial and opaque securities traded on the Wall Street, CNBC has learned.

The meeting, scheduled to be held as early as Tuesday of this week at the headquarters of the New York Fed, is expected to clear the way for the creation of a new clearing house, or exchange, where CDSs can be traded with more transparency and with a degree of government oversight.

At the moment CDSs are traded in the over-the-counter market, where traders buy and sell the securities among themselves.

The effort by the Fed is designed to create a centralized market place where CDSs can be traded.

People close to the talks say that the new exchange could be up and running in a matter of weeks

Additionally the Fed is lowering the borrowing rate in stealth, without having to announce a rate cut.

CDS are identified as the problem behind the collapsing of the economy and these are estimated to be a $65 trillion market.

Here is a 60 minute video blaming CDSes.

CDS 60 minutes, part I

CDS 60 minutes, part II

Click on the image to go to the CNBC discussion.

The Fed is also buying short term debt known as commercial paper to try to easy the credit crunch.

Anybody wondering when they will run out of money? I am.