As 2009 began, the government was scrambling to put together programs to keep financial institutions afloat, provide liquidity to the frozen credit markets, keep people in their homes and develop stimulus packages to prevent the economy from sinking into a depression.

The Federal Reserve initiated its program, which started on Jan. 5, to buy $500 billion in MBS by the end of 2009. This came along with various other initiatives: Congress passed a $787 billion stimulus package in February, the Fed extended and expanded its different liquidity facilities and the Obama administration released its Homeowner Affordability and Stability Plan designed to help between seven and nine million families restructure or refinance their loans to avoid foreclosure.

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