Aid for housing, Fannie, Freddie clears US Senate on Saturday - Global Equity Market Will Celebrate Now.

It happens only in US, once again US govt has proved that they will do anything to save their economy, they are going to print trillions of dollars, ideally if dollars are printed in such a huge volume, it depreciates and Crude/Gold appreciates in price. But as discussed in the previous post, crude is falling and fall is only the speculative part of its price. So, Crude will continue to fall and US economy will be saved for the time being by saving two giants mortgage-buyers Fannie Mae and Freddie Mac.

Global Equity Market will welcome this new and expected to rise further!!!

News Update:-

• The Senate cleared a massive housing bill on Saturday designed to prop up the struggling U.S. housing market and put in place a U.S. backstop for giant mortgage-buyers Fannie Mae and Freddie Mac.
• Senate lawmakers approved the bill, which contains billions of dollars in loan guarantees, a tax break for first-time homebuyers and many other provisions, by a vote of 72 to 13.
• The bill now will go to President Bush, who has indicated he will sign it despite objections about a provision directing $4 billion in emergency aid to local communities to buy and rehabilitate foreclosed homes.
• The measure, approved during a weekend session in the Senate, allows homeowners who cannot afford their monthly payments refinance into government-backed loans. The bill won approval in the House on Wednesday by a vote of 272-152, overcoming Republican objections about extending an unlimited line of credit to Fannie and Freddie, the government-sponsored mortgage-finance titans.