It's one of the biggest financial bail outs in the history of the United States and its impact is being felt around the world.
The US Federal Government has taken over the mortgage giants Freddie Mac and Fannie Mae. The two acccount for nearly half of all the outstanding mortgages in the US.
Together they own or guarantee mortgages worth more than $5 trillion - almost the equivalent of Japan's GDP.
And the threat to them is very real because of the housing market collapse. One in ten Americans is behind on payments or faces repossession and both companies are losing billions.
John Terret takes a look at the details of the bailout plan.
