Reading the coverage and statements about this, the image of a backstop came to mind so here you go:

What does all this mean?  Again, I am not an economist or guru investor but safe to say this is a serious move.  Either things are really this bad or they are perceived to be this bad so negative events occur on expectations alone.  As Bear Stearns was failing, I read an article calling the brokerage business a “trust” business.  Lose the trust, go out of business.  That is what ultimately happened to Bear.

The ripples of credit market excess keep roiling the financial system and are currently tossing Fannie Mae and Freddie Mac about.  These organizations play a significant role in keeping the mortgage market moving so their distress is a big deal.  Treasury Secretary Paulson made this statement today and here are some additional details on what is on the horizon.  As the former head Goldman Sachs, I assume Paulson not only knows the stakes but how to play the game.  Plus, the guy is a former Eagle Scout so who better to be at the helm during this tempest.