So the news is that the Treasury Secretary has decided that the $700B bailout plan will not -- as it was originally intended -- go towards buying up troubled mortgages. I got into a heated debate with my father when I argued that this was essentially corporate welfare demanded by Free Market Capitalists, brought on by corporate greed. He and other conservatives always rebuffed this idea, saying something like, "It's not welfare. We're buying up mortgages. We might even make a profit!" The idea was simple: find mortgages in trouble, buy them up, find ways to get them in the black, and eventually sell them with the hope of breaking even, or maybe even profiting.

But as CNN reports, this is no longer the intention:

Treasury Secretary Henry Paulson said Wednesday the government would broaden the reach of the $700 billion bailout plan to support non-bank financial institutions that provide consumer credit, such as credit cards and auto loans.

In this second stage of the bailout, officials also hope to attract private capital, possibly through matching investments, to give the government's injections more heft.

Paulson also said the government is no longer planning to buy troubled mortgage assets, the original goal of the plan. And officials are continuing to examine ways to help homeowners and slow the tide of foreclosures.

Sigh.