Monster Housing Deal Reached: Debt Limit Will Have To Be Raised

House and Senate leaders have reached a compromise deal on a housing package that would permit the government to bolster Fannie Mae and Freddie Mac in an emergency, overhaul supervision of the housing-finance giants and allow the government to insure up to $300 billion in refinanced mortgages.

The plan also includes a $4 billion program that would allow local governments to buy and rehabilitate foreclosed properties. Bringing socialism down to the local level,I guess.

The bill is expected to easily pass the House and will likely pass the Senate. Lawmakers also plan to raise the federal debt limit as part of the legislation to $10.6 trillion from $9.8 trillion

Who knows what ugly details lurk in this shotgun legislation? The highlights are astounding. This King Kong of a package hasn't taken over the Empire State building, but it will do much more. It will step on, climb through and take over huge swaths of the financial end of the housing market--billions upon billions.

Since the devil is always hidden in the details, it maybe years before we learn what crooked, sneaky and stupid results will develop as a result of this legislation.

Lobbyists are popping champagne tonight.