by Calculated Risk on 12/03/2008 04:32:00 PM

From the WSJ: Treasury Considers Plan to Stem Home-Prices Decline

The Treasury Department is considering a plan to revitalize the U.S. housing market by reducing mortgage rates for new home loans ... The plan, which is in the development stages, would use mortgage giants Fannie Mae and Freddie Mac to bring loan rates down as low as 4.5%, a full percentage point lower than the prevailing rates for 30-year fixed mortgages.
...
Under the plan, Treasury would buy securities underpinning loans guaranteed by the two mortgage giants...

Oh my ...