Santa Claus made an unannounced stop at Treasury, and naughty Tim Geithner was apparently so happy to see him that he wrote Fannie Mae and Freddie Mac BLANK CHECKS. These entities currently own or back the majority of US mortgages, and are bleeding cash and facing further losses.
The "bad" news? This is the federal government's acknowledgment of how deep and wide the housing crisis still is: expect the economy and housing to get worse before they get better.
The "good" news? This is the BAILOUT FOR THE AVERAGE JOE, more than a year after the Wall Street "Too Big To Fail" banks got theirs.
Analysts Say F&F Will Buy Delinquent Mortgages Out of the Securities They Hold
Fannie's Mortgage Holdings lost 26% of value in November
RealCentralVA post on the issues here. Don't miss the brief overview on the local market.