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Stocks Dip on Bernanke Plan, Europe Worries -  CNNMoney.com -- Stocks struggled Wednesday as investors weighed the Greek debt situation, a strong dollar and Fed chairman Ben Bernanke's plan for eventually withdrawing some of the trillions of dollars used to bolster the nation's financial system.

The Dow Jones industrial average lost 20 points, or 0.2%. The S&P 500 index lost 2 points, or 0.2% and the Nasdaq composite lost 3 points, or 0.1%.

Stocks rallied Tuesday as growing bets that the European Union will rescue Greece from its debt problems reassured investors after a four-week selloff. But stocks were choppy Wednesday on concerns that Greece is just the first of many countries that is feeling the pressure of a growing deficit.

Bernanke Outlines Policy - Federal Reserve Chairman Ben Bernanke said in a statement Wednesday that the timing of the end of record-low interest rates would depend on economic conditions, but the Fed would be ready to move. The economy has been growing in the past six months, but many economists are worried it is not sustainable.

Bernanke wants to keep interest rates low until the economy gains traction. Wall Street has been clamoring for some information of the timing of the Fed's rate strategy. Bernanke stopped well short of giving the date, but provided plenty of technical details that will keep Fed watchers buzzing for days.

There is a wide range of estimates from Fed watchers on exactly when the Fed will tighten. The majority thinks the ultra-low interest rates are an emergency setting and the Fed will want to push them higher later this year.

Freddie Mac to Purchase $71 Billion in Seriously Delinquent Loans - Freddie Mac today announced it would purchase "substantially all" of the seriously delinquent loans (+120 days) from their fixed-rate and adjustable-rate mortgage Participation Certificate (PC) securities.(These are the main MBS securities at Freddie Mac).

The company made the announcement Wednesday, saying that the decision to purchase the loans was a cost saving move based on criteria established in December 2007.

At that time Freddie Mac said that it would, in the future, purchase loans that were 120 days or more delinquent at such time it was determined that the cost of guaranteeing payments to the holders of the securities, including advances of interest at the security coupon rate, exceeded the cost of holding the nonperforming loans in the company's mortgage related investment portfolio.

Freddie Mac said that the delinquent loan purchases will help it preserve capital and reduce the amount of any additional draws from the U.S. Department of the Treasury. The purchases would not affect Freddie Mac's activities under the Making Home Affordable Program.