The Government lifts the cap on support to Fannie and Freddie from $200 billion apiece, even though they are just using now just $60 and $51 billion each.
Fannie and Freddie are just another "warehouse that never was."
Throw all your housing slop on Fannie and Freddie shoulders, because the speculation is the Government will push for an enhanced version of HAMP concentrating on principal reduction, because the modifications that cut the principal, instead of just kicking the can down the road with a lower teaser rate, stick.
Homeowners, that want to stay in their home, are being forced to sell their home in foreclosure at a discount to someone else that wants to buy it. Why not let the homeowner get a modification with a lower rate and a principal reduction, so the modification will stick?
And that's why the bears are b*tching.
They want calamity, while our Government wants to be re-elected.