Reuters - I think the Fed has come to the realization that additional measures are needed in place of just deep fed funds rate cuts, though more cuts are needed. But the previous rate cuts had not been as effective as the Fed hoped. They found out that alleviating the stress in the financial system is needed by taking the mortgages off the books of securities dealers. You have to surmise that maybe it got to a crucial stage where someone is on the brink of disaster. This is a much needed step. The next stage may be set up a government-guarantee entity like in the days of the savings-and-loan crisis to buy some of the bad mortgage assets which are not performing.
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