Liberty Just in Case

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Archive for December 6th, 2007

Bush Bailout On the Way

Posted by Mark on December 6, 2007

Yah. Get set for the Bush administration to BAIL OUT homeowners, investors, lenders….and heck, who knows- maybe more Katrina victims.

The deal, according to congressional sources, will be offered to about 2 million borrowers who took out mortgages on primary residences between January 2005 and July 2007 and whose rates will reset from January 2008 to July 2010. Typical starter rates were between 7 percent and 9 percent. People who bought vacation homes and investment property would not be covered.

“My biggest concern is that there are a lot of Americans who are making their mortgage payments, they are current, and the benefit won’t go to them,” Rep. Spencer Bachus, the top Republican on the House Financial Services Committee, told reporters after attending a Capitol Hill briefing on the plan by Treasury Secretary Henry M. Paulson Jr.

Polls show that the public is overwhelmingly opposed to any bailout for speculators and borrowers who gambled on housing prices continuing to rise at double-digit rates. Those gamblers are now in trouble because house prices are falling in Washington and other major cities — leaving many borrowers “upside-down” on their loans and making them unable to refinance their loans to avoid foreclosure.

Rep. Michael N. Castle, Delaware Republican, is offering legislation to facilitate the administration plan, which would require investors who purchased securities backed by subprime mortgages to accept lower rates of return than what were guaranteed in their bond contracts.

Whatever happened to a free market economy? Not anymore….not when Republicans act like demo-bats. (for Bush imitating liberal thinking, please reference: illegal immigration, fiscal spending, and global warming)

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