this is a dissapinting move in my opinion. seems like a step backwards if they are trying to correct the housing bubble.

are they trying to do exactly? Auctioning off money? Is that supposed to increase the money supply?

increase money supply. chartered banks are reluctant to lend out money now with all the credit problems the housing bubble got people into. at some point the market has to correct itself, but its gotta be done slowly or else people will get so fucked. by increasing money supply it makes banks more willing to lend to people. so its a step backwards in my opinion, unless the fed's reasoning for this is that the market correction was happening quicker then they wanted. otherwise this is just another short-term policy that wont help anyone in the long run.