Today the Senate passed what is deemed to be a housing "rescue" bill, thus sending it to Bush for his signature. <
http://news.yahoo.com/s/ap/20080726/ap_on_go_co/congress_housing>
Part of this bill is a huge gift that rewards the greed of the finance industry. This bill gives an unlimited line of credit to Fanny Mae and Freddie Mac for the next year and a half, thus putting taxpayers on the hook for potentially billions and billions of dollars. Furthermore, it doles out 3.9 billion dollars for the government to buy up foreclosed homes and actually ups the size of the loans Fannie and Freddie can buy.
Then there is the rewarding of stupidity, allowing four hundred thousand homeowners, who put themselves out on the hook for a loan they couldn't afford, with ARMs, to refinance to low interest rate loans(down to 3% fixed rate) and have these loans backed the FHA, ie, more obligations for the taxpayer to pick up.
If you keep rewarding greed and stupidity, how do you expect people to learn? How can you call this a capitalist society when you privatize the profit, yet socialize the risk?
Meanwhile, those of us who have done the right thing, who didn't buy a house we couldn't afford, who actually thought before we bought, are continuing to get hammered. Tax cuts for the rich mean increased property, state and local tax increase for us. Now we're picking up the tab, again, for greedy corporations and foolish citizens. Like we didn't have enough debt already in this country. Oh, and as the last kicker, this bill raises the debt ceiling to 10.6 trillion:eyes:
Just another bipartisan piece of bad legislation.