Goodness, of course the government should not be in the business of making wholesale bailout loans.  Jeez, I work for a bank!  You think I want these nitwits screwing up the credit markets any more than they already have?  

So really, I am on your side in principle.  I am only pointing out that these government folks are basically lying.  They are saying they care and are doing something, but are really doing nothing much.  Thats all...

Both fannie mae and freddy mac are not really raising their ceiling, they are only jiggering with their levels to more quickly account for natural run-off of the portfolios.  And bottom line, it only comes to about $30 billion a year.  And...they have made it clear that it will still have to be conforming paper.  That is nothing!

Its just a con.  No one in government wants to be the one that gets blamed for eating a lot of bad loans, so they pretend to do something.  Its all a PR sham...so far anyway.