Bailout of the day: 800 billion to buy mortgage-backed securities
Politics, Bailout News, The Economy November 25th, 2008
You didn’t think we were going to go one single day without a bailout, did you? Of course, the Federal Government never fails to disappoint us and it is once again throwing money at the problem trying to re-inflate the housing and credit bubbles.
According to Bloomberg:
Nov. 25 (Bloomberg) — The Federal Reserve took two new steps to unfreeze credit for homebuyers, consumers and small businesses, committing up to $800 billion.
The central bank will purchase as much as $600 billion in debt issued or backed by government-chartered housing-finance companies. It will also set up a program of $200 billion to support consumer and small-business loans, the Fed said in statements today in Washington.
With today’s announcement, the central bank is starting to use some of the unorthodox policy tools that Chairman Ben S. Bernanke outlined as a Fed governor six years ago. Policy makers are aiming to prevent a financial collapse and stamp out the threat of deflation.
