So we're told, but only a small fraction of mortgages are in foreclosure - 3 to 8 percent - depending on whose figures you cite - and foreclosures are spread around demographically. So you can't blame Fannie and Freddie for bringing down the economy and expect to be taken seriously.

Is the problem a lack of liquidity in credit? I have a problem with this analysis as well. According to an article I cited earlier, there is a lot of money available for lending, but banks are skeered to lend it (waiting for the bailout like children on Christmas Eve?) . . .

Besides, has anyone considered the inflationary effects of all this 'out of thin air' money? Housing prices were ridiculously inflated due to (among other reasons) easy credit. There will HAVE to be an adjustment, unless we all think we can have our cake and eat it, too.