Starting tomorrow, the loan limit will drop from $729k to $598,000 ($625k in other markets) as Fannie and Freddie attempt to reduce their financial risks in the shaky housing market. Taxpayers have kept the 2 giant organizations afloat with billions of $$, and policy makers are trying to wean the wobbly real estate industry away from further subsidies.

But with billions having already gone to bankroll the banking and other industries (GM), a lot of us in the real estate industry think now’s not the time to reduce the loan limits in the expensive east and west coast markets.