The work of Rudolph Schild and his colleagues Darryl Letier and Stanley Robertson (among others) suggests that quasars are not supermassive blackholes but something else - MECOs, magnetic eternally collapsing objects having no horizon and possessing magnetic moment. Schild et al argue that the same applies to galactic blackhole candidates and active galactic nuclei, perhaps even to ordinary blackholes as Abhas Mitra, the developer of the notion of MECO proposes.
In the sequel TGD inspired view about quasars relying on the general model for how galaxies are generated as the energy of thickened cosmic strings decays to ordinary matter is proposed. Quasars would not be be blackhole like objects but would serve as an analog of the decay of inflaton field producing the galactic matter. The energy of the string like object would replace galactic dark matter and automatically predict a flat velocity spectrum.
TGD is assumed to have standard model and GRT as QFT limit in long length scales. Could MECOs provide this limit? It seems that the answer is negative: MECOs represent still collapsing objects. The energy of inflaton field is replaced with the sum of the magnetic energy of cosmic string and negative volume energy, which both decrease as the thickness of flux tube increases. The liberated energy transforms to ordinary particles and their dark variants in TGD sense. Time reversal of blackhole would be more appropriate interpretation. One can of course ask, whether the blackhole candidates in galactic nuclei are time reversals of quasars in TGD sense.
The writing of the article led also to a considerable understanding of two key aspects of TGD. The understanding of twistor lift and p-adic evolution of cosmological constant improved considerably. Also the understanding of gravitational Planck constant and the notion of space-time as a covering space became much more detailed in turn allowing much more refined view about the anatomy of magnetic body.
For a summary of earlier postings see Latest progress in TGD.