The answer is maybe. Time will tell what its short- and long-term effects are on the battered financial sector. The first read indicates that Wall Street wasn't all that impressed as it dropped 157 today after the measure was approved in Washington. There are many skeptics about its potential to cure the ills that were mainly caused by irresponsible mortgage lending practices on all levels and speculative real estate investments and schemes.
For one, everyone should have taken more time in putting the complex plan together. A week or two isn't anywhere near enough time to come up with a comprehensive, well thought-out blueprint for a massive project like this. Congress did hold off the initial Treasury request for a quick approval, mostly motivated by politics, which would have been by many accounts disastrous. The delay did give those who were aiming at a broad-based, responsible outcome to get some kind of a handle on what they were supposed to do. Yet, as it now stands, there seem to be a gazillion details that still need to be worked out and that leaves the door open for all sorts of abuse and mayhem. Haste is the enemy of lasting solutions.
Some of the measures appear to be taking the plan in the right direction, toward restoring confidence in the financial arena and also protecting the taxpayer who is footing this mammoth rescue bill. Federal agencies, supposedly meaning Fannie Mae and Freddie Mac, can modify mortgages in distress. Details on this won't be known for at least a few weeks but it could become a helpful outlet for many struggling homeowners.
A must point was to get an oversight function for the entire effort. Without it the Treasury Secretary would've been pretty much the only authority calling the shots and that would've been potentially very hazardous. After all, he is the one who has been watching the marketplace come unglued for the last several years and didn't have the capacity to correct it. How could anyone trust him to fix it now? Hopefully it has all the needed power to act in the best interest of the taxpayer. And the government can through warrants get equity positions in companies so that if and when bailed-out firms have future gains taxpayers will also benefit from that.
As more details are worked out in coming days and weeks, the picture will become clearer and preferably will yield true results.