From today's news:

"[I]n a striking admission, Paulson said that buying mortgage assets "is not the most effective way" to use government funding."

But don't worry, he has a new plan today. They're on it. They know what they're doing.



"That program was once the cornerstone of the rescue plan for financial markets and was almost the entire focus of Congress when the package was being debated. But almost as soon as Treasury received the money, it decided that giving capital to banks in return for preferred stock was a better use of the funds.
Some of the money saved from not buying mortgage assets will now be used to shore up the market for credit card receivables, auto loans and student loans, Paulson said."