One Trillion Dollars
Here's the plan...we get the toxic assets...and we hold the taxpayer ransom for...(cue dramatic music and close up)...one trillion dollars (cut to dismayed taxpayer).
What the Fed just announced is huge – basically...you and I (aka taxpayers at large) just bought another $750B in Mortgage Backed Securities ("toxic assets"), and $300B in U.S. treasuries.
What Does This Mean For You?
This should provide for increased demand for Mortgage Backed Securities, which should - in turn - keep mortgage rates low for the foreseeable future.
Good news if you're a buyer looking to take advantage of current market and all the homes being offered at a deep discount.
Also good news if you're a currently own a home and have the necessary equity position to refinance at a lower rate.