The House rejects the bailout bill. The bill would have shored up banking and financial institutions, but provided little additional relief to homeowners. Under the proposal, the Treasury Department would begin buying troubled mortgage related securities from banks and other financial institutions. Wall Street would be saved from more embarrassment. Other beneficiaries would be those businesses and individuals seeking to borrow money.
What the bill didn’t do is correct the fundamental problems that began this crisis. Houses will continue to decline in value. Homeowners who have lost their homes or those facing foreclosure will see little or no benefit, and ultimately the taxpayers would be on the hook for an amount that could potentially run into the hundreds of billions. Proponents of the bill, however, claim that taxpayers would be repaid and could possibly even make money on the deal, a claim that’s difficult to believe once the facts are examined closely.
The ultimate loser would be the US economy which will continue to struggle under the weight of enormous debt pressure. We have yet to see any meaningful action from Washington; they're still playing politics and trying to cover their rears. Until something is done to help the housing market, the actions of congress will do little to improve the overall economy.
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