Fannie/Freddie Rescue Unlimited

The House passed a bill that authorizes the Treasury Dept. to extend Fannie Mae and Freddy Mac a lifeline without any of the conditions that the companies' critics had demanded. The House agreed to let the Treasury Department extend unlimited amounts of credit to Fannie and Freddie, and buy shares in the companies to bolster their capital bases. Treasury Secretary Henry Paulson — who argued that the unlimited line of credit and authorization to buy shares would discourage short sellers from mounting attacks on the companies — likened it to a bazooka that scares off enemies even if it—s never used.