Sometimes, I don't understand the government

Ok, actually, lots of times, but who's counting. Most recently, the government raised the limits on the size of home loans which could be purchased by Fannie Mae and Freddie Mac, pseudo-public companies created and supported by the government for the purpose of increasing home ownership by Americans. I'm just curious, but what part of the trillions of dollars of home loans currently being defaulted on by people who were allowed/encouraged to buy houses they clearly couldn't afford suggests that we need more irresponsible home buying by Americans? But that's a side note...

The real thing I fail to understand is why Congress decided to raise this limit right after one of the companies posted a record 3.6 billion dollar loss for the quarter. Huh? Normally, in business, you expand and accept more risk when you're doing well, or the business climate looks good in the coming months, or some combination of those. In this case, the business is doing awful, and the business climate looks awful. A responsible business would be reducing risk and exposure while concentrating on their core profitable business, like every other mortgage company in the US is currently.

So, I have to conclude that either Congress is full of complete and total morons, they have some ulterior motive which is not beneficial for the American people (eg: continuing to get bribes from Fannie Mae and Freddie Mac), or there's something else going on that I just don't understand. Given how much stupidity and dishonesty is evident with todays politicians, I'm guessing one of the former.