Under the plan, dealers can re-package collateralized mortgage obligations, or CMOs, with attributes similar to plain-vanilla "agency" mortgage debt. Reconstituted issues can trade in the so-called "to-be-announced" (TBA) market — one of the most active markets in the world where investors trade MBS before actually taking delivery of the bonds. 
This may not exactly be perpetual motion, but it sure looks like the ruminant digestive system. A few days ago, SIFMA’s bizarre recycling scheme was approved. Doom asks the obvious question: If canned fish is selling for less than fresh fish, how is it going to help to open the cans and put the contents back on the ice? Especially when the buyer is committing to the stuff sight-unseen.
: "US mortgage bond market liquidity measure approved", by Al Yoon, Reuters, January 9, 2009.