Signs of Sanity Appearing with Regard to the GSEs

It appears that both the Treasury Department and Congress are bedcoming concerned about the increasing exposure of Fannie Mae and Freddie Mac to a potential meltdown, and are looking at increased regulations to prevent this.

Considering the fact that they are the 2^nd and 3^rd largest borrowers in the world, after the US government, the effects of their needing a bailout are enormous.

On the other side of this are people who want to bolster the housing market, and tighter GSE regulation goes in the other direction, and the fact that they have been aggressively lobbying Congress for years.

Hopefully, this time the bears win, or we may see a trillion+ dollar bailout.