major mfg 16 milion units, page-9

U$300 billion injection into housing , economics M2/M3
multiplier effect means some of these cash will flow
into the US stock mkts.

2 million household's (approx 10m people) sentiment just rocketed!

Have fun! next week.

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01May08

WASHINGTON (Reuters) - The House of Representatives Financial Services Committee on Thursday approved a sweeping bill to enable the government to finance $300 billion in distressed mortgages with the aim of helping 2 million homeowners.

The legislation, approved by a 46-21 vote, would provide an infusion of capital and new mandate for the Federal Housing Administration to guarantee home loans when a property has sunk in value since the mortgage was written.

Lenders would have to erase a portion of the original loan in order to secure a government guarantee on future payments.

The plan would "put liquidity back in the market and not interfere with the market, I think, but help restore (it)," committee Chairman Barney Frank told reporters after the vote.

The committee's action sends the bill to the full House, which is expected to vote on it next week. A Senate panel is to begin drafting a companion measure on Tuesday.
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