What to do today...

[Vanraw]

$600 Billion and the market just yawned.

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Perhaps you or Breand can explain this to me. As I understand it, Mortgage interest rates are based on Long term bonds. So Buying long term bonds will / should lower the 15 and 30 year mortgages. But I just landed a interest rate at 4%, which is historically extremely low.

How does the government buying Bonds help the economy?

Its not going to motivate banks to lend. I'm reading the banks are sitting on trillions of dollars?
Its not going to boost home building. I mean 4% 30 year and 3.75 15 year is pretty sweet.

So how does this help?

2nd Question. Does this add to the deficit, or reduce it? This is the question I really have that I don't understand. Aren't they in effect printing money to buy back debt? If so will the deficit go down? or is it going to increase by 600 more billion?