Looks like Senator Dodd is in on the action now with another $300 billion. Original bill: http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.5649:  You may ask what does this have to do with stocks? My response everything, but first the article:

New Housing Deal Reached

By MICHAEL R. CRITTENDEN
May 19, 2008 5:26 p.m.

WASHINGTON -- The top two members of the U.S. Senate Banking Committee said Monday they have reached an agreement on a housing aid package that includes a regulatory overhaul for Fannie Mae and Freddie Mac.

Banking Committee Chairman Christopher Dodd (D., Conn.) and ranking Republican Richard Shelby of Alabama said in a release that week-long negotiations have resulted in a compromise both lawmakers could support. The Banking panel is scheduled to vote on the measure Tuesday morning.

"I think it's a win-win, a double win for all of us," Mr. Shelby said in an appearance on CNBC, adding "it's a great compromise."

The committee didn't immediately release details of the agreement and what changes had been made to the bill. The legislation combines the regulatory reforms for government-sponsored enterprises Fannie Mae and Freddie Mac with a proposal to use the Federal Housing Administration to offer up to $300 billion in federal guarantees to help refinance struggling borrowers into new mortgage loans.

One compromise proposal discussed last week would use the money from an affordable housing fund created from Fannie Mae's and Freddie Mac's earnings to help pay for the FHA guarantee program.

The panel was originally scheduled to vote on the measure last week, but despite frantic negotiations between Mr. Dodd, Mr. Shelby and their staffs the panel had to postpone consideration.

Also AIG has been able to raise 20.5 billion: http://www.marketwatch.com/news/story/aig-raise-roughly-20-billion/story.aspx?guid=%7BBA20B16F%2DB07B%2D4BB8%2D867D%2DAD8169A89939%7D&siteid=yhoof

Which should also be a catalyst to help the market. Now we have FNM who were given permission to buy 300 billion in loans beyond their capacity. Freddie was also allowed to buy an extra 200 billion The Federal reserve has now emptied the vault for a 100 billion Banks and another 200 billion window set up for everyone and 30 billion to BSC. On top of that Europe issued us a credit for 500 billion in January. So that is basically 1 trillion 530 billion dollars that we or I know of. Now it has not all been lent out yet, but as it flows outward there are only so many places it can go. We also have OPEC with more than double the 50 dollar a barrel oil money so they have a trillion or so extra that needs a home. So if you think stocks go up because of value you are correct. However I also believe that it is about money and how much of it their is. With more of it in circulation it finds its way into our equities market (stocks) and as you are all aware of the commodities if you have to fill up your gas tank. Since it is still expanding it does not matter that companies are doing poorly, they get bought anyway. Transportation sector is at all time highs and is basically leading the DOW. The European union has not raised rates or contracted the money supply and Great Britain did lower rates a little freeing up more money. Australia and China are trying to stop the expansion because of inflation and pulling money back in.

In conclusion I am stuck because I cannot buy stocks at this level and I cannot short because they have no choice but to go up. One thing to be aware of is that the bond sellers may start selling at a loss and thereby increasing yields. If this were to happen or if the market completely collapsed because of the huge demand we just put on it with the 300 billion stimulus and the 500 billion spent above budget on the war that would cause stocks to tumble. Corporate lending has dramatically improved in the last month, however the municipal bond market is still having troubles. So to wrap it up. It has a lot more to do what goes on outside a company rather than their balance or income statement. Enjoy the show their always is a premium that comes with borrowing all this money. It may arrive sooner than you think.