U.S. nationalizes mortgage finance and creates new slush fund.

http://online.wsj.com/article/SB126168307200704747.html?mod=WSJ_hpp_sections_news http://blogs.reuters.com/rolfe-winkler/2009/12/25/fanniefreddie-support-increased/ Fannie/Freddie support increased Dec 24, 2009 20:59 EST No better time than Xmas Eve to announce the expansion of the administration’s housing slush fund. Previously, Fan and Fred each had a $200 billion credit line from Treasury.... [more]

http://online.wsj.com/article/SB126168307200704747.html?mod=WSJ_hpp_sections_news http://blogs.reuters.com/rolfe-winkler/2009/12/25/fanniefreddie-support-increased/ Fannie/Freddie support increased Dec 24, 2009 20:59 EST No better time than Xmas Eve to announce the expansion of the administration’s housing slush fund. Previously, Fan and Fred each had a $200 billion credit line from Treasury. Though they’ve drawn only $111 billion so far, the administration thought it prudent to offer unlimited support Obama needs a slush fund to prop up housing, especially after Ben Bernanke stops printing money to buy mortgage-backed securities at the end of March. Fan and Fred will continue to serve nicely. One other thing you probably didn’t know. Treasury has its own MBS purchase program running parallel to the Fed’s. It has accumulated quite a bit of paper… The Treasury said today that it is ending its mortgage- backed security purchase program as of Dec. 31, after about $220 billion in purchases. That’s in addition to the $1.25 trillion and $175 billion the Fed is spending on MBS and Fannie/Freddie debt respectively. [less]