Rate Watch 2-10-2009

Cautiously Floating:
US stimulus talks stretch longer. The Dow is down almost 300 points. Treasury's Geithner says critical part's of financial systems are damaged. This and other financial rescue programs that are expected to be formally released later Tuesday could cost as much as $1.5 trillion dollars. Treasury says banks in bailout must participate in mortgage foreclosure mitigation programs. Treasury, Fed committed to spending up to $600B to buy Fannie, Freddie debt and Mortgage Backed Securities to drive down mortgage rates. Plan calls for $50B of bailout funds for home foreclosure relief aimed at owner occupied middle class homes, help to reduce payments. Treasury is launching comprehensive housing program.