The nearly universally detested plan to use $700B in federal money (ourmoney) to buy up bundles of mortgage debt from financial institutions hit the skids today. I happened to be watching on Bloomberg TV through their online feed and you definitely got the visceral feel of anxiety from both those who were reporting and voting on it.
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I guess we finally know how much money it takes to get the attention of congress.
$700B
That's how much the Secretary of the Treasury (Henry Paulson) is asking the U.S. Congress to approve for him to use in buying up "toxic" assets?
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Regardless of how I might feel about being on the hook for Freddie Mae and Fannie Mac's debt, the market responded to the news of the government stepping in with a big surge overall, but espcially in housing stocks.
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