Have you noticed any pigs flying?
Bush is threatening to veto a couple of bills that will help strapped homeowners facing foreclosure. The measures will aid both homeowners directly and local governments. Republicans argue that the bills “reward lenders and investors who own the property, and could act as an incentive for them to foreclose rather than find ways to help struggling borrowers stay in their homes.”
For once, I am with Bush. This, again, is the moral hazard. Buyers who should have been more vigilant and lived within their means (never mind speculators) are going to be bailed out by the government. I am deeply opposed to this, as I was to the Bear Stearns bailout (even though that move prevented an epic calamity).
For those people who have been hanging on waiting for the market to correct, these bills are a slap in the face. The message? Do spend irresponsibly. The government will take care of you. It’s wrong.