Possible fallout from Fannie, Freddie bailout

The San Francisco Chronicle reports:

some observers say the housing crisis could get worse if the government continues Fannie and Freddie's current lending policies. While the entities tout their strict underwriting guidelines, which include requiring full documentation of income, "you can still buy a house with only 3 percent down," said Peter Schiff, president of Euro Pacific Capital in Darien, Conn. "That's tantamount to nothing down" and creates a breeding ground for more foreclosures down the road.

You'll want to read the whole article.