. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ http://www.iht.com/articles/2008/09/07/business/fannie.php The U.S. government's planned takeover of Fannie Mae and Freddie Mac came together hurriedly after advisers poring over the companies' books for the Treasury Department concluded that Freddie's accounting methods had overstated its capital cushion, according to regulatory officials briefed on the matter.

The treasury guarantee plan for money market mutual funds guarantees any funds deposited prior to Sep 19th.

So the treasury buys this loan and then, if I am hearing the plan correctly, will wait for the market to rebound and then sell the asset so that banks don't have to deal with "firesale" prices aka the actual prices of these assets.

There is so much fear in the credit market right now that the 3 mo Treasury Bill auction went for .05% this week!

It has a 50 billion LOC with the treasury

Why are we even having a discussion about giving authority and responsibility for "the economic well being of Americans" to ONE guy- the Secretary of the Treasury?

Now, the lenders are licking their chops at the prospect of tossing all the bad paper onto the heap the Treasury will happily pay to much to buy.Any way, that is all just my opinion which if you take my opinion and a couple of bucks you can get some coffee somewhere.

For details to your questions, go directly to the treasury http://treasury.gov/press/releases/hp1163.htmNow the fed is buying commercial paper (one of the main things MM's hold) to help MM's out.

Originally posted by Jordan Sabo:o by the way jon, since the treasury is getting sh*t on with all these bad assets, what do you think will ultimately happen with those assets?

I'm going to miss a president who at least waits a couple years to royally f*$# things up and can appoint treasury secretaries who know how to fill out a 1040.Interesting revisiting old threads....