Huge Homeowner Rescue Plan Passed by US House of Representatives

It is being reported from several media sources that yesterday the House of Representatives passed a bill that would give homeowners cheaper goverment-supported mortgages to 500,000 mortgage holders who find themselves in economic peril. The vote was 266 in favor and 154 against, with 39 Republicans crossing over to support the plan.

Of course, our good friend and President has said he will veto such a plan to aid people who are in danger of losing their homes and the investments they represent. (Maybe if our names were Haliburton, Chrysler, or Bear Stearns he would be more willing to help).

The plan would let the Federal Housing Administration accept an additional $300,000,000,000 in new mortgages so that borrowers could avoid foreclosure and refinance their homes. Sen. Barney Frank said that we are in a recession and "Diminishing the number of foreclosures is in the interest of not simply those who will avoid foreclosure, but people in their neighborhoods, in the cities in which they are located, and the whole economy."

The plan is to be used for those homeowners facing foreclosure and those who now owe more on their homes than the property is worth.

Bush says that we cannot fund a program to bail out lenders and speculators. He tends to forget that most of these borrowers were given bad advice by their lenders and most are not speculators, but are residents of the homes they bought. In other times it appeared that this administration always wanted to bail out businesses that were in trouble, especially big ones like banks/lender, etc. Now, it almost appears that since small homeowners are involved, Bush wants to do nothing to help them. Ignoring the trickle down effect this slump is causing related and unrelated businesses.

Oh well. Another case of infighting in the federal government. In the end it is unlikely that anything beneficial will come from that bunch. At least not until after the elections in the fall. Once the dust has cleared maybe (and that is a big MAYBE) something will happen. My bet is that in time the economy will pick up whether the government gets involved or not. Just like a cold. You can treat it, go to the doctor, or leave alone. In the end, it will improve all by itself.

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