Fannie Mae to the Rescue?

Ok, but remember that the government does NOT back up their paper, in spite of what consumers think. Their request for higher loan limits makes sense because with 50billion in the bank they can buy these loans at a huge discount and then offer a re-fi package to the hurting consumer.

Fannie Mae executives have asked the company's regulator to raise the maximum amount of home mortgages and related securities Fannie can hold in its investment portfolio as a way to provide more liquidity in the market, people familiar with the situation said.

The regulator, the Office of Federal Housing Enterprise Oversight, last year ordered Fannie and its rival, Freddie Mac, not to increase their mortgage holdings because of problems with accounting and financial controls at the two government-sponsored providers of mortgage funding.

But Fannie officials have argued that raising the ceiling on their mortgage purchases could help calm turmoil in the mortgage market, caused by investor jitters over rising defaults, and avoid disruptions in the flow of credit, these people said.

Per WSJ this AM. Sometimes you have to hold your nose and allow things to happen in order to save the fucking country. Remember Lockheed-Martin, Chrysler, the Airlines after 9/11, and so on. This will be a disguised government bailout of the homeowner who has been hung out to dry, but in typical moronic Bush fashion, he will pretend that he let "market forces" work. Jesus, the man is brain dead. Main problem with all this: next will be a ton of Pork Barrel Congressional spending designed to "help" out one of the main contributors to their corrupt souls, the Building Industry. Just wait.