Fix Congress's Housing Fix
The bill before Congress reflects how good government intentions are perverted by interest group politics
It is not surprising that the White House threatens to veto the Senate version of the bill. The worm in the apple is manifest in the recent revelation of a whole group of Washington insiders who had preferential mortgage rates from one of the most egregious lenders, Countrywide Financial.
It is appropriate for the government to try to create a firewall around foreclosures because the country faces a real macroeconomic crisis in the danger of an accelerating, self-reinforcing collapse of home prices. Rep. Barney Frank put it well when he said, "The economy has been taken hostage by people that took some very bad decisions. The answer is to pay as little ransom as possible to the least ill-deserving people we can find." The legislation before the Congress, alas, benefits too many of the most ill-deserving people and companies. l
We didn't publish a magazine last week, but even belatedly we wanted to take note of the untimely death of NBC's Tim Russert. The loss to his family and friends, painful as it still must be, is equaled in significance by the loss to the media business that he loved. Each week Russert reminded us that good journalism is about doing your research and being tough but fair with the politicians and prominent people you cover. We share those values. His presence will be missed, but we hope his example will endure.
Reader Comments
Housing Fix
Where were you all when Bear Stears got rescued? What is our alternative to housing foreclosure crisis - "let them all sink because they should have been smarter"? That would have effected everyone - owners of homes and the economy.
Sec of Treasury, Paulson has endorsed this effort. George Junior is signing it. A tough pill but necessary.
Re: Could someone with common sense prevail?
You bring up a good point, but you will still be paying for this with tax dollars when the government steps in and bails out all of the "other players" in this mortgage mess. To blame just the buyer is absurd. You know it started with the banks, mortgage brokers, investors and the like. Remember that the homeowner was the final recipient of the proceeds. So it passed through many corrput hands before ever getting there. I too bought a house that I can afford, and I am not in trouble. But to think that this is just the homeowner or "renter" is narrow-minded.
bail outs
Our system has worked well for ages without government interference. Some people suceed, some people fail; some businesses suceed, some fail. It's called the American way! Get used to it! Government - stay out of the way!
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