I am feeling a bit better about the economy today. Although we are still in for some very rough economic times, it appears that the government has stopped taking half-measures and is grabbing the bull a little more by the horns.
And by the way -- if you took my idea of buying GGP stock yesterday at the open -- you would be up a whopping 200% today! I can't help but gloat as there are so few stock market victories these days. . .
The U.S. Federal Reserve, in another massive life-support intervention for the U.S. financial system, Tuesday announced a $600 billion program to buy mortgage-related debt and securities and a $200 billion facility to buy consumer debt securities.
The U.S. central bank said it would buy up to $100 billion in debt issued by Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, the government-sponsored mortgage finance
The Fed also said it would buy up to $500 billion in mortgage-backed securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae.
The move is intended to strike at the heart of U.S. economic woes, the collapsed housing market.
"This action is being taken to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved financial conditions more generally," the Fed said in a statement.
The central bank also launched a $200 billion facility to back consumer loans, including student, auto, and credit card loans and loans backed by the federal Small Business Administration.