Senate Bill Will Cause, Not Prevent Foreclosures, and Rip Off Taxpayers

The Washington Post today editorialized against the Senate housing bill, the so-called “Foreclosure Prevention Act of 2008,” noting that it is actually “A Pro-Foreclosure Bill” that contains “perverse incentives” that will “encourage foreclosures” while sticking the taxpayers with the tab.  The bill is also “studded with economically questionable sops” to special interests, and contains subsidies for local government borrowing that have “proven notoriously inefficient.”  We earlier criticized Congressional mortgage bailout proposals and subsidies to left-wing housing groups.  The American public opposes mortgage bailouts.