Watching CNBC this year has been one heck of a roller coaster ride. The Fed rate cuts, and the Bear Stearn’s news made for quite a week.  There was a GREAT article by NPR explaining the moves by the Fed.

The Fed’s moves raise questions about just how deep the financial industry’s woes go…

Along with the Fed’s action, the federal government tried to do it’s part in assisting with the mortgage problems.  Read Fannie & Freddie Set Free from Business Week as well as CNNMoney’s story titles: Fannie, Freddie To Get Lending Boost.

Another stone fell into place in the federal government’s plan to build a path to credit market recovery. On Mar. 19, the Office of Federal Housing Enterprise Oversight, or OFHEO, said it was reducing the amount of capital it requires Fannie Mae (FNM) and Freddie Mac (FRE) to maintain on their balance sheets above statutory requirements.

The government is loosening capital restraints on Fannie Mae and Freddie Mac so that the mortgage-finance companies can expand their roles in the stricken housing market.