GSEs bailout for dummies or unintended consequences

". The one-trick pony of this system was the fact that funds were flowing in at the very low rates, so the interest return was only a small fraction of the total inflow. After the credit bubble started to deflate the monetary stream was reduced to only two targets: Treasuries and GSE papers. All other streams can be rounded up to zero. This weekend GSEs bailout can be reduced to one simple task - preserve the low average interest rate on those two sources, which started to deteriorate in the recent months. By comparing the today Treasury and GSEs yield with last week yield we can conclude that in the short time the mission is accomplished."