Bernanke is going to start buying mortgage-backed securities, perhaps including some in default, from banks holding them. The Fed announced the creation of a $200 billion facility to do this today, along with a $100 billion swap facility with the European Central Bank, British central bank and Swiss National Bank. Last week the Fed announced it was doubling the size of its existing facility to $200 billion. Net $500 billion is going into the banks. The stock market was up more than 400 points as a result.