Is Obama ready to print more $$?? a trillion perhaps??

  Concern grows over the reckless spending in Washington. One hot, hot rumor is that Obama is about ready to "forgive" 20% of loan mortgages for those people who couldn't "afford" to make their payments. (They couldn't afford to make their payments because the government directed banks to  give loans to previously ineligible people who couldn't afford payments in a policy of fairness in loan making. Barney Frank, et al, were instrumental in threatening banks to make these loans. Consequently since they were not able to make their payments, they defaulted on loans. Indeed, 30% of people who have been bailed out in their mortgages have already defaulted on the bailout.)
  It is being suggested that one way the administration could make new money available for bailing out more homeowners (perhaps up to a trillion dollars) is to simply print more. To simply print more, without regard for longterm consequences. Over at Strata-Sphere:

So how can this plan be made to work?  Simple – The Fed.    First Fannie Mae would vote to create $100 billion in new equities – or $200 billion, or $800 billion – the number is truly immaterial,  Whatever they want.   Then the Fed steps in and transfers this equity to it’s own balance sheet and hands over whatever Fannie Mae (ie, Obama) wants to carry out this plan.   We are playing Calvinball here – there are no rules as to what the Fed can put on its balance sheet, and no effective oversight, not even from Congress.  (remember how much heat the proposal to audit the Fed caused?)   The Fed can literally do whatever it wants, and the Fed can never go bankrupt because it has a license to print money.  Or, as in this case, a license to add as many zeroes to the end of any digital bank account as it feels like adding.  The Fed would be effectively transferring its license to print money over to Fannie Mae, freeing them up to pass out as much cash as their masters felt was politically useful.