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This page contains a single entry by Mark Willen published on March 27, 2008 6:11 AM.

Affirmative Action -- A Minefield in the Making? was the previous entry.

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ISSUES
Housing Crisis Puts Republicans on the Spot

By Mark Willen | Comments (0) |

housing.jpg
As if they don't have enough problems, Republicans in Congress are caught between principles and politics in the housing crisis, with a big decision coming in just a couple of weeks.

 

The sparring among presidential candidates over housing this week will hit the rest of Washington in a big way when Congress returns from its Easter break next week. Democrats will press a bailout plan for distressed homeowners along the lines of ideas pushed by Hillary Clinton and Barack Obama. It calls for putting up $300 billion in tax dollars to guarantee refinancings for thousands who can't keep up with payments. But it requires current mortgage lenders to take a big hit -- allowing them to recover no more than 85 percent of the current appraised value of the home.

 

The bill is anathema to McCain and other laissez-faire Republicans who say the federal government shouldn't bail out people who made bad decisions. They'd rather wait for the stimulus and the markets to work through the problem.

 

But will GOP members of Congress say no in an election year? Especially after the Federal Reserve and the Treasury effectively bailed out Wall Street this month. Many Republicans didn't like that move, either, and they don't believe two wrongs make a right. But will they risk appearing insensitive to voters struggling through a recession? We'll find out soon.

 

Categories: Issues
Mar 27, 2008, 6:11 AM
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