not only is it 'How Many', but let's also look at 'What Kind' will the Treasury buy.
first the banks etc who own mortgages will only sell the Gov't their really, really bad mortgage loans.
the mortgage paper holders will keep all of the 'upsidedown' loans because the bailout plan does not allow the Gov't to buy them.
there are several other types of mortgages the holders will sell the Gov't,
like most of the ALT A, and many of the ARMS, along with those really feeble & exotic mortgages with 'teaser rates' that balloon several years
These are the mutant mortgages that the conmen & shysters created for the purpose of duping the working poor that were entranced with a unrealistic
notion that the housing deals were a way to get rich the easy way.
These mutant, chimera mortgages looked good on the surface but as time went by, the mortgages began to stink. It is these types of paper that were not
processed thru 'regular channels' such as the FHA or HUD or Freddie-&-Fannie...because these exotic, hybrid, frankenmortgages,
were nowhere near being 'conforming' or traditional....
these mortgages were cooked up in the backrooms, and pushed through the financing screeners....which lo & behold turned up some outfit that was
marginally legal and barely solvent, who agreed to take the risk of the mortgage...(most likely for some $$ kickback disguised as a promotion fee?)
all in all, the Gov't will keep busy with restructuring all those mortgages (which should never have been allowed to be created)~ but generated sales
fees & bonuses for layers of management ! The bailout of just the mutated mortgages will likely freeze up, as even the restructered & compliant
mortgages won't get sold to Freddie/Fannie because their cash allotments will have long been spent on the millions of under stress
but i'm more worried that the $7800Billion is not all
about just the mortgages ~which is the focus of the 'sales pitch' by Treas. Sec.
because there is another multi-Trillion $$ problem with mortgage-related
-debt-paper... and the wording of the bailout bill does not
all those debt instruments from being included in the bailout program.