Now the Fed is buying "toxic" mortgages, and not the Treasury. (the Fed has no limits, they may keep printing ad infinitum). So the $700B approved by Congress are now free for Obama to use.
Paulson and Bernanke finally pulled their heads out of their arse's and finally gave Fannie and Freddie the EXPLICIT GUARANTEE that they had been missing all of these months since their "nationalization" by the Feds. Have you taken a look at what mortgage rates have done in the last day? Pretty dramatic moves to the downside, for sure.