Foreclosure Aid to be Included in Bush Bailout Plan
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House Representative Barney Frank, chairman of the House Financial Services Committee, who has been pushing for foreclosure aid to be added to the Bush Bailout Plan all weekend, reports that Treasury Secretary Paulson has agreed on a foreclosure piece proposed by congressional Democrats.
The administration has agreed to add foreclosure relief options and aid to homeowners who face foreclosure (or who will be facing foreclosure next year due to option ARM loan interest rate resets) on their mortgages.
The Los Angeles Times reports, "Democrats have insisted that, while emergency help for the financial system -- potentially the biggest government bailout in U.S. history -- must be approved quickly, the measure must also include help for ordinary Americans, including those threatened with loss of their homes," (Los Angeles Times, 9/23/08).
Senate Democrats, including chairman of the Senate Banking Committee, Chris Dodd, are also calling for the federal government to limit compensation packages given to their top executives to be no more than that of the highest paid government official.
Seeing as how the executives on Wall Street, without any interference from the Bush Administration, ushered the country into this financial chaos due to irresponsible lending among a bevy of other fiscal misbehaviors, and who will be benefiting the most from Bush's proposed bailout, it would only make sense that the people who are holding these bad loans (many of who were misled about the details of their loans: i.e. TILA fraud), should receive some notice and aid to prevent further economic turmoil for the average American.
As more details of Bush's Bailout are revealed and revisions get made, it becomes frighteningly obvious that Wall Street executives, like recently ousted Freddie Mac CEO Richard Syron, knew exactly what they were doing when they were making record profits, writing bad loans, and selling collateralized debts to investors in Costco-like wholesale numbers with no regard to whether they could make good on the CDOs they were selling: that if their dubious business philosophy failed, the government would step in and bail them out, passing the bill on to taxpayers and future generations.