There really is no other way to describe it. The US Government will essentially buy the bad mortgages that are sitting on the books of the US banks and will repackage them and assign a fair value to them and sell them back to the banks. Essentially we, you and I, will buy a bunch of loans for $100M, do the analysis on the loans that the banks are afraid to do, and then resell them to the banks fo $10M.
Privatizing loss, socializing gain.