Is The Government Mortgage Loan Bail out a Good Idea?

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Is The Government Mortgage Loan Bail out a Good Idea?

Is The Government Mortgage Loan Bail out a Good Idea?

At 7am today President Bush signed the new program into existence. The bill, the biggest overhaul of housing law in decades, provides a lifeline for an estimated 400,000 homeowners facing foreclosure, and provides assurances to the mortgage giants Fannie Mae and Freddie Mac, whose books are loaded with bad mortgages.

House republicans were very against the bail out. Initially President Bush said he would veto the bill because it was very socialistic but later changed his mind saying some relief was better than no relief at all.

What do you think? Was the bail out a good idea? What are the up side and the down side of this new bill?

Ron Lambright

Comments (3)

Carey Pott
January Financial - Foothill Ranch, CA

I'm not wild about it, personally. The idea of my tax dollars going to bail out private firms so their shareholders don't lose too much mone makes me a little queasy.

Jul 30, 2008 06:35 AM
Justin Ukaoma
Vizion KC - Kansas City, MO
Kansas City Real Estate Investments

    For the most part I was for the housing bill but after looking over some of the key points I have a few concerns. My primary concern has to do with the removal of DPA for FHA loans. It seems to me that if you want people to buy homes assistance with the down payment would go a long way. I am also concerned that the 400,000 struggling home owners that this bill is supposed to save is far to low of a number. From what I have seen the number or foreclosures could easily reach 6,000,000 by 2011.

    I guess I some what agree that Fannie and Freddie are too big to let fail but only to a degree. Now that this has been done where will the government draw the line on bailing out private institutions? What about credit card companies? Both Visa and American Express are experiencing higher amounts of account delinquencies. Will they one day need to be bailed out by the government because they are also to big to fail?


Jul 30, 2008 06:44 AM
HOPE USA Inc. - Fort Mill, SC
HOPE4USA - Your Charlotte, NC Credit Experts!

I have to agree. This bail out businessbothers me because there is no place to stop.

Jul 30, 2008 03:16 PM