This is kind of a follow-up to this story here. And it reinforces the notion that the Administration and the Democratically-controlled congress are dead set on re-inflating the housing bubble.

There are two proposals at play: 1) extending the first-time homebuyer tax credit and 2) Increasing the loan limit amounts for Fannie, Freddie and FHA.

First-time Homebuyer Tax Credit

According to Bloomberg:

House Speaker Nancy Pelosi said lawmakers might extend an $8,000 tax credit for first-time homebuyers that is set to expire Dec. 1.