What to do with Fannie Mae and Freddie Mac? Freddie Mac has said it'll require up to $35 billion in federal funds, in addition to the $14 billion it already took. Fannie Mae, which hasn't taken government funds yet, now says it'll need up to $16 billion. Even scarier, most people assume they're going to need a lot more.

The takeover deal with Treasury Department allows the government to inject up to $100 billion in each. Aiding the big agencies is something of a zero sum game for taxpayers. The AP notes that a bill giving bankruptcy judges the ability to reduce rates or principal will reduce the value of mortgage securities held by Fannie and Freddie. That will force even more taxpayer injections.

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