Paulson’s remarks are hitting the wires even before he takes the podium. Among the more important provisions beside buying illiquid paper from the banks, the government will buy more Freddie and Fannie paper than the $5 bln previously announced. This should further tighten spreads and lower mortgage rates which could help stimulate the moribund housing market.
Stocks indexes have eased from their highs as has EUR/JPY, the big driver so far this morning.
