The Fed is going to trade banks, government bonds for mortgage backed securities. Banks have been selling these mortgage backed securities at deep discounts to pay off their obligations. This would eventually lead to insolvency and bankruptcy for these banks. This will allow them to continue operations as their shareholders unload the stock. It doesn't save the bank in the end but it bales out the stockholders.
It is the government left holding the bag of losses. Ultimately, this means it is the taxpayers who bale out the shareholders of our major financial institutions. It is they who pay to keep the investor class solvent.
I feel something trickling down. It definitely isn't prosperity.
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