Rumors are spreading that in the face of a predicted blowout for Dems in November and Obama's ever lowering approval numbers, he is planning to order Fannie Mae and Freddie Mac to renegotiate down the principal on mortgages where the properties are now worth less than the existing mortgages.He's banking on another redistribution of assets to save his and his party's hides. James Pethokoukis writes on Reuters:Main Street may be about to get its own gigantic bailout. Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth. An estimated 15 million U.S. mortgages - one in five - are underwater with negative equity of some $800 billion. Recall that on Christmas Eve 2009, the Treasury Department waived a $400 billion limit on financial assistance to Fannie and Freddie, pledging...(Read Full Post)