A Swift Federal Infusion May Not Work So Swiftly

Bailout,” “rescue,” call it what you will: Congress this month created a huge new buyer of toxic assets, and that should drive prices higher, right?

Maybe not. Or maybe not just yet. Prices of nonagency mortgage-backed securities ticked up when rumors of the $700 billion government fund first surfaced, and went even higher when the Treasury announced details of its original proposal.

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