F&F are the last big guns the administration has to deal with the mortgage crisis.
The Fed isn't buying MBS anymore, so I'd look for something big proposals for F&F in the coming months.
The government didn't wipe out AIG's common equity.. Why would they with F&F - and how could they do it other than a US GSE filing for bankruptcy -- that would roil world markets something fierce. Am I missing something?
The Fed says they will stop buying MBSs. I think they are saying that because they have not seen any real improvement in the housing market. If mortgage interest rates look like they will rise and housing continues to slide, I think they will jump back in and start buying MBSs. If they see that the new mortgage terms will help the economy in general, I think they will re-start buying MBSs for sure. If the Fed starts tightening, we diffently will need to have the Stabiliy Mortgage or the economy will double dip.