Wednesday, June 25, 2008

Senate to pass $300 Billion Foreclosure Bailout?

The senate is pretty close to passing a $300 billion bailout for homeowners in foreclosure. In essence, this bill would use FHA, HUD money to back up "bad" loans that will result in foreclosure. This bill would cost every US resident (man, women, child, retired, etc.) approximately $1,000 per person to help pay for the losses incurred by banks who loaned money to people who couldn't afford the mortgage.... To me something doesn't exactly sound smart...

Harry Reid insists that the senate will skip their 4th of July break if the Bill if they don't vote on this bill this week. In a preliminary test vote this bill passed the senate 83-9. It also looks like it will pass in the House.

Should government bail out people who made bad decisions and can't be fiscally responsible? Should every US citizen be required to pay for Countrywide's decision to lend to millions of high risk borrowers? Or should the banks be required to take responsibility and find a solution the the problems they created?

2 comments:

Anonymous said...

The American juggernaut may continue for a few more years... Now doubt the Pentagon has played out several scenarios where the Fed totally collapses and anarchy ensues.

The financial system, once the provider of the American Dream and white picket fences will start to look more and more like the Terminator, with its steel and glowing eyes revealed after its flesh has been ripped off.

Alan Barker said...

What about the housing stimulous bill where they're trying to give $7,000 tax credit to encourage people to buy foreclosure homes?