The Federal Reserve Discovers Regulation

Exactly. The Fed had the ability to regulate the loan industry years ago. They neglected because everyone was getting rich. Now that they're bailing the whole industry out, NOW they go ahead and restrict loans to consumers that might be able to repay them.

The investors had their fun, now the taxpayers will bail them out. And I'm sure this will never, ever happen again.

UPDATE: Add me to the chorus of those who think that Freddie and Fannie should be government agencies and not a "government-sponsored entity" with stockholders but also the government running the business. If they were government agencies they wouldn't have to be rescued and their need for capital to bump up their stock price would be eliminated.