Both the House and Senate have passed similar mortgage bailout bills by lopsided margins, although Bush has threatened to veto them. But the American people dislike mortgage bailout legislation more than ever. Only 21 percent support the mortgage bailout, according to pollster Rasmussen Reports. The mortgage bailout bill would give even more ability to gamble with taxpayers’ money to the Federal Housing Administration, which helped spawn the mortgage crisis. “The bill also allows troubled lenders like Countrywide to transfer their distressed loans to the federal government,” at taxpayer expense. And it would siphon tax money to left-wing special interest groups.
The fact that Congressional leaders are using financial turmoil as a cover to engage in pork-barrel politics and pass irresponsible legislation is especially reprehensible in the wake of Friday’s massive bank failure, and the fact that taxpayers will also be forced to shoulder a multibillion dollar bailout of the fraud-ridden government-sponsored lender Fannie Mae. The mortgage bailout bill will cost taxpayers plenty, while further undermining housing markets.