'Tis the season for giving. No, this is not part of the $700 bil bailout (though the seed money $20 B part of the bailout..with the rest going up in smoke). It's a new plan for disbursement of money. The Feds says that the $600 billion is to support housing, with the rest to revive consumer lending.
In case you've been hiding in the cave, the news coming from the home front past couple of days - ain't pretty. Via NYT.
The Federal Reserve said it would buy up to $600 billion in mortgage-backed assets from government-sponsored mortgage giants Fannie Mae and Freddie Mac. It would buy up to $100 billion in debt directly from the companies and up to $500 billion in mortgage-backed securities.
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UPDATE: With the announcement, lenders have new "ammo" now since Feds move pushed down mortgage rates. "Bankers and brokers say rates fell as far as 5.25 percent, at least for a while." via Bankrate.com.
