Forget raising the cap to $800 billion for Fannie/Freddie.  They announce (on Christmas eve no less) that the slush fund for picking up toxic mortgage is unlimited:

Treasury uncaps credit line for Fannie, Freddie

The Obama administration pledged on Thursday to back beleaguered mortgage finance giant Fannie Mae and Freddie Mac, no matter how big their losses may be in the next three years.

It also jettisoned a demand that the two companies cut the size of their mortgage-related investment portfolios next year, allowing them to provide even more support in the near term for a housing market recovering from its worst slump in decades.

As Ian Welsh notes, now that the Fed might actually be audited, what better place to stash all those toxic assets than at Fannie and Freddie, where there is no independent auditor since they sacked their own Inspector General?

And Rahm — well, he’s safe.  From today’s gaggle on Air Force One with Deputy Press Secretary Bill Burton:

Q Is Rahm going to keep his job despite Jane Hamsher and Grover Norquist?

MR. BURTON: I have the feeling that Rahm’s job is very safe.

What can you say, it got their attention.

So, you get to choose.  You can give this a pass, bend logic like a pretzel, scream like a banshee and defend Rahm Emanuel, or you can say “enough” — this is just wrong.

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