Stocks welcomed a joint effort by the Federal Reserve and the White House to reassure on the credit front. Analysts offered more qualified support to a promise by President Bush to help struggling homeowners refinance their mortgages.

“It’s very light on detail and limited in scope,” said Jeff Schappe, chief investment officer at BB&T Asset Management. “He is putting it essentially in the lap of Congress. It would allow some delinquent borrowers to get an FHA guarantee so that they can refinance. I suspect it’s going to be limited to borrowers in a primary residence who are significantly delinquent.”

Axel Merk, a portfolio manager at the Merk Hard Currency Fund, concluded what Bush’s plan “will do is make poor homeowners slaves of their homes. .. The terms of the loan will require that you basically never pay down your loan. Unless they are bailed out by higher home prices, they are becoming prisoners of their homes.”

More Wall Street comments here