Devoted to interest rates, loans, and lending institutions

Mortgage lenders who invested in securities backed by subprime loans are getting yet another break from the government. The latest is a $200 billion Fed plan designed to provide more market liquidity as well as inject "confidence" in the market.

Mortgage lenders are getting very nice terms, funded by a Treasury auction, through the Term Securities Lending Facility. While this might help mortgage lenders get out of their sticky spots, it is unlikely to lower mortgage interest rates. The $200 billion Fed plan is also slowing speculation of an emergency Fed rate cut.

Of course, the ultimate plan, with all this "confidence" boosting, is to get consumers to feel better about spending money. It's all about the illusion that things are getting better. Nothing changes fundamentally, but it looks like the government is helping the economy along.

Too bad it's really not.