A controversial election year housing bill was passed by the Senate a couple of days ago, creating a possible showdown with the White House. It is no surprise that I am not much of a fan of this bill as it will likely slowdown any much needed correction in the free marketplace.
Instead, after the politicians are done handing out their pork and repaying “favors” and covering the cost of the bureaucracy, there will likely be very little left over for the common ‘Guy’, who perhaps could really use some help.
Senators voted 84-12 to pass the legislation drafted by Banking Committee Chairman Sen. Christopher Dodd (D-CT) and Rep. Richard Shelby (R-AL), the committee’s highest-ranking Republican. The measure sets aside $10.9 in bonds to refinance sub-prime mortgages, $180 million to counsel homeowners with bad loans, tax incentives for businesses and buyers of foreclosed homes. The controversial provision to buy up foreclosures was also included despite the White House previously saying it “constitute[s] a bailout for lenders and speculators.’ via AHN.