While the US intervention in the GSEs has many impacts on Main Street as well as Wall Street, it will also have very profound impacts on the creditor nations which fund the US current account. Lower mortgage rates are the likely outcome for Americans while lower yields (and higher prices) on Freddie and Fannie paper will reward the central banks and sovereign wealth funds who plowed billions into these firms because of their higher yields and implicit government guarantee. Implict was not good enough in recent weeks as the central banks (particularly in Asia) went on a buyers strike as their capital was eroded by the swoon in the fortunes of the GSE. Mr. Paulson succumbed to pressure from Newport Beach to Beijing to make a move on the GSEs.