Is Countrywide Rescued?

Fed Surprised decision to reduce the discount rate to 5.75 will help a bank like Countrywide to borrow the money that they have to borrow through Line of Credit which is 10-11%.

With the help of discount window they can put the mortgaged based collateral, MBS, CDO etc to get the money from the Fed for 5.75%. And, Fed encouraged Bank to use this rate to solve the liquidity problem.

It could be temporary solve the problem, as the CDO which nobody worth how much it is, Fed will give money on those collateral. Within 30 days, the Fed will have meeting and will reduce the target rate to 5% which further solve the problem. BTW, the CDO is the biggest joke of the century, created by Wallstreet some of the hedge fund and Retirement fund has bought this securities. They have no clue what this worth; and none of the others. Funny thing is European Countries, China, Korea etc are fooled baught this thinking AAA rating, they will loose money that they invested with their surplus. They will learn the lesson.

This is Bush like step, where they try to rescue corporate, and some wall street nitwiz who make a mistake and want to bail them out. Lot of rich people has money in the hedge fund they will be bailed out at the cost of "inflation", which average Joe is suffering.

Another thing I suspect is the "news" that fed will redue the rate was come out on Thrusday during the late market hour, which keep market goes up on that day.