Read further. They explain this view. It is 100% correct, based on the evidence they provide. What they are saying is that this was LTCM but instead of banks coming in and forcing losses at 50 cents on the dollar, the govt came in and bailed everyone out at par. I have no first-hand knowledge of the extent of this trade but a lot of it sounds correct (the key premise of the Fed is that this isn't leaking into the market...whether you believe ZH or not, you should be extremely suspicious of this line).