The deal is for about $26,000,000,000, which was once considered a lot of money. That money will be used to assist 750,000 people who were screwed by the robo-signed foreclosures and about a million people will see their mortgages refinanced and their debt load reduced.
It is - as with so many plans these days - half a loaf. It will help some people, but it won't end the systemic problems in the housing market.
However, and I think everything needs a however these days, there are a lot of people who feel the housing market has finally bottomed out. There are probably localities like Miami and Las Vegas where there is still a ton of housing trouble. But overall, the housing market seems poised to start easing back up. All we need is jobs for the 20-somethings living with their parents so they can move out and use excess capacity.
And anything - and I mean anything - that brings some certainty to the housing market and allows for some people to refinance is a good thing. A million people who might see their debt loads eased is a good thing.
So while I'm sure the Free Marketeers (Who's the leader of the club/ that none of us can see? I-N-V/I-S-I/B-L-E/-H-A-N-D) will freak out. While I'm sure Krugman will tell us that this doesn't go far enough or deep enough, the fact is that we are beginning to see positive economic news.
By itself, this is inadequate. But it's not nothing.
Here is an example of the good news on the economy. The Bloomberg piece here on the Fed is good. They actively refute lies, which is a refreshing change of pace for journalists.