Story of the Day: Housing Rescue Bill

The House on Wednesday afternoon approved the most far-reaching government assistance for the nation’s housing market since the New Deal.

The measure, which passed by a vote of 272-152, includes broad authority for the Treasury Department to protect the nation’s two largest mortgage finance companies and an aggressive plan to help hundreds of thousands of troubled borrowers avoid foreclosure by refinancing their mortgages.

The White House, citing an urgent need to restore market confidence in the two mortgage giants, Fannie Mae and Freddie Mac, said Wednesday morning that President Bush would sign the measure despite his opposition to $3.9 billion in grants included in the bill for local governments to buy and refurbish foreclosed properties. - House Passes Housing Bill When Bush Says He'll Pass It.

There's a host of good news in here. And a there's a host of interesting quirks. After all, it is Washington and it is a campaign summer, too.

( The oddest thing is that McCain hasn't blamed Obama for the housing crisis, yet. McCain did blame Obama for high oil prices just this week.... And wait a week, and he'll have his spokesman say that's not what he said. )

The oddest thing is that what was good for the goose wasn't good for the gander. A lending hand is A-OK for the lending giants of Freddie Mac and Fannie Mae, from the perspective of the White House. But, a lending hand is not acceptable for individual homeowners or the communities and states most directly effected by the foreclosures and dropping property values.

No. See the individual home owners are subject to personal responsibility criteria much more stringent than the tenets of professional responsibility expected of these corporate lending giants. The individual home owner should have know better...while the lending giants were....what...oh yes,  suffering from systemic inadequacies.

So....yes, to offering a handout to those who should know better (freddie mac, fannie mae) and no to offering help to those who trusted them to offer expert, unbiased advice.

Regardless, the bill's passed. Let's hope the provision to offer assistance for these two lending giants isn't required. Some estimates for the eventual cost are well north of $25 billion, well north of $100 billion...well north. But then the true costs for the Iraq War were well north of $100 - $200 billion. And this is some of the same crew now giving us estimates for this Housing Rescue Bill  that gave us estimates for the Iraq War. ( Hey, I'm just saying.)